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Minnie Hooper Direct Method

Price: $2.50


Condensed financial data of Minnie Hooper Company are shown below

Minnie Hooper Company
Comparative Balance Sheets
12/31/14
Assets  2,014 2,013
Cash  93,600 33,400
Accounts receivable  63,200 37,000
Inventory  124,500 102,650
Investment 79,500 107,000
Plant assets  318,000 205,000
Accumulated depreciation  (44,000) (40,000)
 Total  634,800 445,050
Liabilities and Stockholders' Equity 
Accounts payable  56,600 48,280
Accrued expenses payable  15,100 18,830
Bonds payable  140,000 70,000
Common stock  250,000 200,000
Retained earnings  173,100 107,940
 Total  634,800 445,050
Minnie Hooper Company
Income Statement
31-Dec
Sales  297,500
Less: 
Cost of goods sold  99,460
Operating expenses, excluding 
depreciation  19,670
 Depreciation expense  25,000
 Loss on disposal of plant assets  5,000
 Income taxes  37,270
 Interest expense  2,940 189,340
Net income  108,160 

Additional information:
1. New plant assets costing $149,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 were sold for $10,000, resulting in a loss of $5,000.
4. A cash dividend of $43,000 was declared and paid during the year.

Instructions
Prepare a statement of cash flows for Minnie Hooper Company using the direct method.

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