the comparative balance sheets for drake company appear below 496622

The comparative balance sheets for Drake Company appear below:

Drake, Inc.

Comparative Balance Sheets

December 31

Assets 2014 2013

Cash 41,000 35,000

Accounts Receivable 75,000 53,000

Inventories 120,000 132,000

Prepaid Expenses 19,000 25,000

Investments 100,000 75,000

Plant assets 325,000 250,000

Accumulated Depreciation (65,000) (60,000)

Total Assets 615,000 510,000

Liabilities & Equity

Accounts Payable 93,000 75,000

Accrued Expenses 29,000 24,000

Bonds Payable 120,000 160,000

Common Stock 275,000 170,000

Retained Earnings 98,000 81,000

Total Liabilities & Equity 615,000 510,000

Drake, Inc.

Income Statement

For the Year Ended December 31, 2014

Sales 450,000

Cost of Goods Sold 300,000

Gross Margin 150,000

Less:

Operating Expenses 60,000

Depreciation Expense 17,000

Income Taxes 20,000

Interest Expense 18,000

Loss on sale of plant assets 3,000 118,000

Net Income 32,000

Additional information

1. New plant assets costing $100,000 were purchased with cash.

2. Investments were purchased with cash.

3. Old plant assets costing $25,000 and with a book value of $13,000 were sold for $10,000 cash.

4. Bonds with a face value of $40,000 were converted into $40,000 par value of common stock.

5. Common stock was issued for cash.

6. A cash dividend of $15,000 was declared and paid during the year.

Required

Prepare a statement of cash ows for the year using the indirect method.