Mary Kay Cosmetics
Selected Data and Additional Information from the Company's

question 17

Essay

Mary Kay Cosmetics
Selected data and additional information from the company's records are presented below:
$\begin{array}{lll}\underline {\text { Balance Slicet Data }}&\underline { 2014 }&\underline { 2013 }\\ \text { Cash } & \$ 235,000 & 246,000 \\\text { Accountsreceivable } & \$ 120,000 & \$ 150,000 \\\text { Inventories } & 56,000 & 50,000 \\\text { Accounts payable } & 38,000 & 70,000 \\\text { Salaries payable } & 10,000 & 5,000 \\\text { Equipment } & 110,000 & 70,000 \\\text { Accumulated depreciation } & 28,000 & 32,000 \\\text { Bondspayable } & 100,000 & 200,000 \\\text { Common stock } & 300,000 & 200,000 \\\text { Retained earnings } &76,000& 400,000\\\\\underline {\text { Income Statement Data } }&&\underline { 2014 }\\\text { Net sales } && \$ 920,000 \\\text {Cost of goods sold } &&700,000\\\text { Operating expense (excluding depreciation expense) } &&160,000\\\text { Net income (Includes depreciation expense and gain) } &&56,000\\\text {Gain on sale of equipment } &&4,000\\\end{array}$ Additional information:
1. Equipment with a cost of $\$ 30,000$ and a book value of $\$ 18,000$ was sold for $\$ 22,000$ during 2014 .
2. Common stock was issued to retire bonds payable duing 2014 .
3. The only items affecting retained earnings in 2014 were net income and dividends declared and paid. Refer to Mary Kay Cosmetics.Prepare the investing activities section of the company's statement of cash flows for 2014.

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Definitions:

Proactive Interference

A phenomenon where old information hinders the recall of newly learned information.

Cue-dependent Forgetting

The inability to recall information in the absence of specific cues or triggers that were present at the time the memory was formed.

Brain Stem

The part of the brain that connects the cerebrum with the spinal cord and controls vital functions such as breathing, heart rate, and blood pressure.

Memories Stored

The process by which information is encoded, stored, and retrieved in the brain for future use.