Question

The following information is available for the Brookstone Company:
Brookstone Company Balance Sheets At December 31

2015
2014
Assets:



Cash $ 29,568
$ 27,648
Accounts receivable 38,616
35,280
Merchandise inventory 87,750
74,052
Long-term investments 67,080
67,680
Machinery 210,600
174,600
Accumulated depreciation (40,260 ) (37,440 )
Total assets $393,354
$341,820





Liabilities:



Accounts payable $ 78,000
$ 48,456
Income taxes payable 12,870
12,240
Bonds payable 58,500
79,200
Total liabilities $149,370
$139,896
Equity:



Common stock 140,400
115,200
Paid-in capital in excess of par 15,600
10,800
Retained earnings 87,984
75,924
Total equity $243,984
$201,924
Total liabilities and equity $393,354
$341,820






Brookstone Company Income Statement For Year Ended December 31, 2015
Sales
$288,000
Cost of goods sold $97,080

Depreciation expense 35,280

Other operating expenses 57,600

Interest expense 2,400 (192,360 )
Other gains (losses):


Loss on sale of equipment
(10,080 )
Income before taxes
85,560
Income taxes expense
33,180
Net income
$ 52,380





Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old machinery with an original cost of $45,060 was sold for $2,520 cash.
(3) New machinery was purchased for $81,060 cash.
(4) Cash dividends of $40,320 were paid.
(5) Additional shares of stock were issued for cash.
Prepare a complete statement of cash flows for calendar-year 2013 using the indirect method.

Answer

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