Alma Ortiz Prepared Carlee Instruments' Balance Sheet and Income Statement $\bullet$

question 49

Essay

Alma Ortiz prepared Carlee Instruments' balance sheet and income statement for 2014.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,Carlee's president,Mike Lymon,has asked you to prepare the statement of cash flows.Lymon has provided you with the balance sheet and income statement that Ortiz prepared,as well as some notes she made:
$\bullet$ Equipment with an original cost of $35,000 was sold for $20,300.The book value of the equipment was $19,400.
$\bullet$ On June 1,2014,the company purchased new equipment for cash at a cost of $18,500.
$\bullet$ At the end of the year the company issued notes payable for $10,500 cash.The note will mature on December 31,2018.
$\bullet$ The company paid $20,200 in cash dividends for the year.
Required:
Using the indirect method, prepare Carlee Instruments’ statement of cash flows for 2014.

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Definitions:

Endolymph

A fluid contained within the membranous labyrinth of the inner ear, playing a key role in both hearing and balance.

Weber Test

A quick screening test for hearing that involves placing a tuning fork on the center of the forehead to assess bone conduction of sound.

Sensory Deafness

Hearing loss resulting from problems in the inner ear or the neural pathways related to hearing.

Conductive Hearing

A form of hearing that involves the transmission of sound waves through the outer and middle ear components.