Kate Petusky prepared Addison Controls’ balance sheet and income statement for 2013. Before she
could complete the statement of cash flows, she had to leave town to attend to a family emergency.
Because the full set of statements must be provided to the auditors today, Addison’s president, Lance
Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the
balance sheets and income statement that Petusky prepared, as well as some notes she made:
Addison Controls
Income Statement
For the Year Ended December 31, 2013
Sales revenue
$ 129,700
Cost of goods sold

70,410

Gross margin
Selling expense
Administrative expense
Salaries expense
Depreciation expense
Interest expense
Income before gain and taxes

59,290
$13,190
8,280
20,100
1,940
4,340

47,850
11,440

Gain on sale of Land

920

Income tax expense
Net income

823
$ 11,537

Addison Controls
Comparative Balance Sheets
As of December 31
2013
Cash
$ 5,360
Accounts receivable, net
6,350
Inventory
31,770
Total current assets
43,480
Property, plant, & equipment, net
211,550
Total Assets
$255,030
Accounts payable
$ 3,580
Accrued expenses
2,600
Taxes payable
2,240
Bonds payable
60,080
Total liabilities
68,500
Common stock
125,220
Retained earnings
61,310
Total stockholders’ equity
186,530
Total liabilities & stockholders’ equity $255,030

2012
4,210
5,500
34,270
43,980
215,480
$259,460
$ 5,930
2,340
2,730
50,470
61,470
125,220
72,770
197,990
$259,460
$

• Equipment with an original cost of $35,070 was sold for $20,870. The book value of the equipment
was $19,950.
• On June 1, 2013, the company purchased new equipment for cash at a cost of $17,960.
• At the end of the year the company issued bonds payable for $9,610 cash. The bonds will mature
on December 31, 2017.
• The company paid $22,997 in cash dividends for the year.
Using the indirect method, prepare Addison Controls’ statement of cash flows for 2013. (If an amount
decreases cash flow then enter with a negative sign preceding the number or parenthesis,
e.g. -15,000 or (15,000).)

Addison Control
Statement of Cash Flows
For the Year Ended December 31, 2013

$

$

Net cash
by
activities

Net cash
by

activities

Net cash
by
activities

$