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Home Free Inc. had the following financial information for 2013. Prepare the statement of cash flows using the indirect method for the operating section. Briefly analyze the statement -- what do you learn from it?

Additional information: Old equipment was sold for $800 cash when the original cost of the equipment sold was $31,600. No new equipment was purchased in 2013. Land was purchased with cash. Assume any new stock was issued for cash. Dividends were paid in Cash.

Enter amounts subtracted or cash paid/used as negative amounts.

Home Free, Inc. Income Statement For Year Ended December 31, 2013
Revenue:
Sales Revenue		275,000
Expenses:
Depreciation Expense	33,000
Salaries Expense	99,000
Rent Expense	22,000
Utilities Expense	5,800
Loss on Sale of Equipment	800
Total Expenses		160,600
Net Income		114,400

Home Free, Inc. Balance Sheet December 31, 2013
Assets:	2013	2012		Liabilities & Equity:	2013	2012
Cash	350,750	410,450		Accounts Payable	12,000	17,500
Accounts Receivable	70,000	125,000		Taxes Payable	3,550	2,150
Supplies	550	850		Total Current Liabilities	15,550	19,650
Inventory	83,000	79,000		Long Term Notes Payable	-	39,000
Total Current Assets	504,300	615,300
				Common Stock	155,000	155,000
Equipment	77,000	108,600		Paid in capital in excess of par value, common stock	285,000	285,000
Less: Accum. Depreciation	(63,000)	(60,000)		Total Paid in Capital	440,000	440,000
Land	155,000	-
Total Plant Assets	14,000	48,600		Retained Earnings	217,750	165,250
TOTAL ASSETS	673,300	663,900		TOTAL LIABILITIES AND EQUITY	673,300	663,900

Home Free, Inc. Statement of Cash Flows For Year Ended December 31, 2013

Description	Amount	Total
Subcategory,Cash Flows from Operating Activities:
Subcategory,Adjustments to reconcile net income to net cash
	Single line	Single line
Total Adjustments		Single lineSingle line
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		Single line
Subcategory,Cash Flows from Investing Activities:
	Single line	Single line
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		Single line
Subcategory,Cash Flows from Financing Activities:
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

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