The Following Data Is Available for Salmon Arm Limited for the Year

question 18

Essay

The following data is available for Salmon Arm Limited for the year ended December 31, 2014 Income Statement
For the year ended December 31, 2014
$\begin{array}{lr}\text { Sales } & \$ 375,000 \\\text { Cost of goods sold } & 200,000\\\text { Gross profit } & 175,000 \\\text { Cash operating expenses } & 100,000 \\\text { Amortization expense } & 25,000 \\\text { Loss on sale of equipment } & 15,000\\\text { Net income }&\$35,000\end{array}$ Additional Information: $$\begin{array} { l r } \text { Increase in accounts receivable } & \$ 25,000 \\\text { Decrease in inventory } & 7,500 \\\text { Decrease in accounts payable } & 10,500 \\\text { Proceeds from sale of equipment } & 35,000 \\\text { Dividends paid } & 20,000 \\\text { New building acquired for cash } & 21,000 \\\text { Proceeds from issue of bonds } & 52,500 \\\text { Cash at the beginning of the year } & 12,000\end{array}$$ Required:
Prepare the cash flow statement for Salmon Arm Limited for the year ended December 31, 2014, using the indirect method.

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Definitions:

Glucose

A fundamental glucose that is vital for providing energy in living organisms and contributes to the makeup of a variety of carbohydrates.

Amine Group

A functional group in organic chemistry consisting of a nitrogen atom bonded to hydrogen atoms, often found in amino acids.

Amino Acid

Organic compounds that combine to form proteins, serving as the building blocks of life.

Ammonia

A colorless gas with a characteristic pungent smell, used in many industrial and cleaning products, which is toxic in high concentrations.