Statement of Cash Flows (Indirect Method) The Sweet Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 are presented below: SWEET COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue Cost of Goods Sold Wages Expense Depreciation Expense Insurance Expense Interest Expense Income Tax Expense Gain on Sale of Equipment (19,200) 1,003,200 1,135,200 243,600 72,000 15,600 Net Income $132,000 SWEET COMPANY Balance Sheet Dec. 31, 2013 Dec. 31, 2012 Cash $27,600 81,600 212,400 10,800 1,064,400 $37.200 51,600 151,200 13,200 924,000 226,800) (210,000) $967,200 Prepaid Insurance Plant Assets Total Assets $1,170,000 Liabilities and Stockholders'Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Carnings Treasury Stack Tolal Liabilities and Stockholders' quity 32,400 6,000 62,000 792,000 213,600 62,400) 1,170,000 9,200 96,000 702,000 17,600 967,200 During the year, Sweet Company sold equipment for $32,400 cash that originally cost $68,400 and had $55,200 accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of $36,000 were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise Required a. Compute the change in cash that occurred during 2013 b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 S b. Use a negative sign with cash outflow answers. SWEET COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Income Add (deduct) items to conwert net income to cash basis Depreciation Gain on Sale of Equipment Accounts Receivable Inventory Prepaid Insurance Accounts Payable Interest Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Equipment Purchase of Equipmen Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Donds Payable Purchase of Common Stock Payment of Dividends Purchase of Treasury Stocik Cash Provided by Financing Activities Net in Cash Cash at Beginning of Year Cash at End of Year