Condensed financial data of sinjh Inc.

P13-9A Condensed financial data of sinjh Inc. follow.

		Sinjh Inc.
Comparative Balance Sheets
December 31
Assets	2014 2013
Cash	$100,350 $ 48,400
Accounts receivable	92,800 33,000
Inventory	112,500 102,850
Prepaid expenses	29,300 26,000
Long-term investments	140,000 114,000
Plant assets	265,000 242,500
Accumulated depreciation	(47,000) (52,000)
Total	$692,950 $514,750
Liabilities and Stockholders’ Equity
Accounts payable	$112,000 $ 67,300
Accrued expenses payable	16,500 17,000
Bonds payable	110,000 150,000
Common stock	220,000 175,000
Retained earnings	234,450 105,450
Total “	$692,950 $514,750
			Sinjh Inc
			Sales revenue Check your essay before you submit. See exactly what your professor sees. See your AI and plagiarism results before your instructor does.Get the exact same report your professor uses. Trusted by 50,000+ students worldwide. Get Plagiarism Report Humanize My Essay Gain on disposal of plant assets	$392,780 5,000
			Less:
			Cost of goods sold	135,460
			Operating expenses, excluding
			depreciation	12,410
			Depreciation expense	45,000
			Income tax expense	27,280
			Interest expense	4,730 224,880
			Net income	$172,900

Additional information:

1. New plant assets costing $80,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $50,000 were sold for $12,500 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using the indirect method.

P13-10A – Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.

Prepare a statement of cash flows using the direct method.