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Strackman Lux Indirect

Price: $2.50


The comparative balance sheets for Strackman Lux Company as of December 31
are presented below

Strackman Lux Company
Comparative Balance Sheets
12/31/14
Assets   2,014  2,013
Cash   59,520  45,000
Accounts receivable   44,000  62,000
Inventory   154,550  142,000
Prepaid expenses   15,280  21,000
Land   145,000  130,000
Equipment   228,000  155,000
Accumulated depreciation - equipment   (45,000)  (35,000)
Buildings   200,000  200,000
Accumulated depreciation- buildings   (60,000)  (40,000)
 Total   741,350  680,000


Liabilities and Stockholders' Equity
Accounts payable  $46,350 $40,000
Bonds payable  300,000 300,000
Common stock, $1 par  195,000 160,000
Retained earnings  200,000 180,000
 Total   741,350  680,000

Additional information:
1. Operating expenses include depreciation expense of $40,000.
2. Land was sold for cash at book value of $20,000.
3. Cash dividends of $25,000 were paid.
4. Net income for 2014 was $45,000.
5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000
with a book value of $12,000 was sold for $6,000 cash.
6. Issued 35,000 shares of $1 par value common stock in exchange for land with a fair
value of $35,000.

Instructions
Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect
method

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