E13-8 Here are comparative balance sheets for Syal Company.
| Assets | 2014 | 2013 | |
| Cash | 73,000 | 33,000 | |
| Accounts receivable | 85,000 | 71,000 | |
| Inventory | 170,000 | 187,000 | |
| Land | 73,000 | 100,000 | |
| Equipment | 260,000 | 200,000 | |
| Accumulated depreciation-equipment | (66,000) | (34,000) | |
| Total | 595,000 | 557,000 | |
| Liabilities and astockholder's equity | |||
| Accounts payable | 35,000 | 47,000 | |
| Bonds payable | 150,000 | 200,000 | |
| Common stock ($1 par) | 216,000 | 174,000 | |
| Retained earnings | 194,000 | 136,000 | |
| Total | 595,000 | 557,000 | |
Additional information:
1. Net income for 2014 was $103,000.
2. Depreciation expense was $32,000.
3. Cash dividends of $45,000 were declared and paid.
4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
5. Common stock was issued for $42,000 cash.
6. No equipment was sold during 2014.
7. Land was sold for its book value of $27,000.
Instructions
Prepare a statement of cash flows for 2014 using the indirect method.
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