The following information was extracted from the accounting records of INC Enterprises: a. Net income, $49,200 b. Depreciation on equipment, $3,600 c. Purchased long-term investments, $6,600

Problem

The following information was extracted from the accounting records of INC Enterprises:

        a.     Net income, $49,200

        b.     Depreciation on equipment, $3,600

        c.     Purchased long-term investments, $6,600

        d.     Sold property, plant, and equipment for $45,900 (amount includes a loss of $7,700)

        e.     Issued long-term note payable to acquire equipment, $15,400

        f.      Payment on long-term note payable, $42,000

        g.     Issued common stock for cash, $5,100

        h.     Declared and paid cash dividend, $27,100

        i.      Bonds payable into common stock, $140,000

Increases (decreases) in selected accounts were as follows:                                      

Accounts receivable              (2,500)

Interest receivable                     (800)

Inventory                                   7,400

Prepaid expenses                          800

Accounts payable                     2,400

Income tax payable                 (600)

Accrued liabilities                   (1,400)

Interest payable                           900

Salaries payable                     (1,710)

December 31, 2013 cash was $51,400.

Prepare the statement of cash flows, in proper format, on a separate sheet of paper, for INC Enterprises for the year ended December 31, 2014, using the indirect method and including a schedule of noncash investing and financing activities, if necessary. 

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