statement of cash flows

ACC 342 Exam # 3                                                                             NAME:____________________________

PART I (50 POINTS)Using the information below prepare a statement of cash flows using the indirect method for 2014 for All for Knot, Inc.  (a business that provides knot tying instruction and supplies to both sailors and boy scouts).

                                                                All for Knot, Inc.

                                                                  Balance Sheet

                                                                                                              2014       December 31        2013_______

Cash                                                                                      $35,900                 $10,200

Accounts Receivable (net)                                           38,300                                  20,300

Inventory                                                                            35,000                                  42,000

Long-term Investments                                                                          0                                     15,000

Property, Plant, & Equipment                                    236,500                 150,000

Accumulated Depreciation                                          (37,700)                               (25,000)

                                                                                                $308,000                              $212,500

Accounts Payable                                                            $ 17,000                                $ 26,500

Accrued Liabilities                                                               21,000                                   17,000

Long-term Notes Payable                                               70,000                                   50,000

Common Stock                                                                   130,000                                  90,000

Retained Earnings                                                                70,000                                  29,000

                                                                                                $308,000                              $212,500

Additional Data:

 1. Net income for 2014 is $71,000.

2. Depreciation on plant assets for the year was $12,700.

3. The long-term investment was sold for $28,000 (assume gain or loss was ordinary).

4. Dividends of $30,000 were paid during the year.

5. Machinery costing $26,500 was purchased for cash.

6 .Machinery costing $60,000 was obtained by issuing a long-term note payable.

7. Paid a $40,000 long-term note payable by issuing common stock.

All for Knot, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Increase in Cash

Cash flows from operating activities:

Net Income                                                                                                                                             $_______________

      Adjustments to reconcile net income to net cash provided by

      Operating activities:

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Net cash provided by operating activities                                                                                     -----------------------

Cash flows from investing activities:

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Net cash provided by investing activities                                                                                                               ---------------

Net cash used by financing activities:

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Net cash used by financing activities                                                                                                     __________

Net increase in cash                                                                                                                                               $---------------

Cash, January 1, 2014                                                                                                                                             __________

Cash, December 31, 2014                                                                                                                                       $

Significant noncash investing and financing activities

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