Condensed financial data of Cadet Company are shown below.
| CADET COMPANY | ||
| Assets | 2012 | 2011 |
| Cash | $ 78,700 | $ 33,400 |
| Accounts receivable | 72,970 | 37,000 |
| Inventory | 121,900 | 102,650 |
| Long-term investments | 89,500 | 107,000 |
| Plant assets | 320,000 | 205,000 |
| Accumulated depreciation | (49,500) | (40,000) |
| Total | $633,570 | $445,050 |
| Liabilities and Stockholders” Equity | ||
| Accounts payable | $ 57,700 | $ 48,280 |
| Accrued expenses payable | 15,100 | 18,830 |
| Bonds payable | 140,000 | 70,000 |
| Common stock | 250,000 | 200,000 |
| Retained earnings | 170,770 | 107,940 |
| Total | $633,570 | $445,050 |
| CADET COMPANY | ||
| Sales | $294,500 | |
| Gain on sale of plant assets | 3,000 | |
| 297,500 | ||
| Less: | ||
| Cost of goods sold | $104,460 | |
| Operating expenses, excluding | ||
| depreciation expense | 14,670 | |
| Depreciation expense | 35,500 | |
| Income taxes | 32,100 | |
| Interest expense | 2,940 | 189,670 |
| Net income | $107,830 | |
Additional information:
1. New plant assets costing $151,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 and accumulated depreciation of $26,000 were sold for $13,000.
4. A cash dividend of $45,000 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.
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