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  3. problem 2 (29 points) johnny cds is a store that b

Problem 2 (29 points) Johnny CDs is a store that buys used music CDs and...

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Accounting

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Problem 2 (29 points) Johnny CDs is a store that buys used music CDs and sells them to customer. The following below is a balance sheet for year-end 2014 and 2013. in S thousands) Assets Cash Accounts receivable Inventories Prepaid insurance Equipment, net December 31st 2013 Change 10 2014 100 20 15 90 15 10 27 20 47 185 140 Total Liabilities and Stockholders' Equity Accounts payable Income Taxes Payable Long-term notes payable Contributed capital Retained earnings 20 (10) 45 30 20 50 50 10 95 (13) 35 140 185 Total The following additional information is provided: The net income for the year 2014 was $10,000 I. The company sold an old computer. The equipment had a book value (net) of $1,000 and was sold for $500. Depreciation for the year was $5,000. Various other pieces of equipment were purchased over the year. 2. Dividends were distributed to shareholders on May 19th, 2014. 3. Prepare the entire statement of cash flow under the indirect method. Your cash flow statement should include operating, investing and financing cash flows

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