The Following Information Is Available for the Ehrens Corporation:

question 12

Essay

The following information is available for the Ehrens Corporation:
EHRENS CORPORATION
Income Statement
For Year Ended December 31, 2013
$\begin{array}{|l|r|r|}\hline \text { Sales } & & \$ 240,000 \\\hline \text { Cost of goods sold } & \$ 80,900 & \\\hline \text { Depreciation expense } & 29,400 & \\\hline \text { Other operating expenses } & 48,000 & \\\hline \text { Interest expense } & 2,000 & (160,300) \\\hline \text { Other gains (losses): } & & \\\hline \text { Loss on sale of equipment } & & (8,400) \\\hline \text { Income before taxes } & & 71,300 \\\hline \text { Income taxes expense } & & 27,650 \\\hline \text { Net income } & & \$ 43,650 \\\hline\end{array}$ Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid.
(5) Additional shares of stock were issued for cash.
Prepare a statement of cash flows for the 2013 calendar year using the indirect method.

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Definitions:

Mid 19th Century

Refers to the period from 1850 to 1865, a time of significant political, social, and technological changes, including the industrial revolution and the American Civil War.

Punishment

The imposition of a penalty as retribution for an offense, often involving pain, loss, or confinement.

Escape

The act of breaking free from confinement or a dangerous situation, often involving quick thinking and immediate action.

Free Soil

A political movement in the mid-19th century U.S. that opposed the expansion of slavery into Western territories.