Acc205 Principles of Accounting: P14-33 Refer to the comparative balance sheet for Draper

Acc205 Principles of Accounting

P14-33 Preparing the statement of cash flows - indirect method [25-35 min]
This problem continues the Draper Consulting, Inc., situation from Problem 13-37 of Chapter 13.

Refer to the comparative balance sheet for Draper Consulting.

Draper Consulting, Inc.
Comparative Balance Sheet
December 31, 2013 an 2012

Assets 2013 2012
Cash 514,936 16,350
Accounts receivable 37,500 1,750
Supplies 2,200 200
Equipment 16,000 1,800
Furniture 5,700 4,200
Building 125,000 -
Accumulated depreciation (2,753) (100)
Total Assets $698,583 $24,200

Liabilities
Accounts payable 10,000 4,650
Salary payable 4,100 685
Unearned service revenue - 700
Interest payable 10,667 -
Notes payable 40,000 -
Bonds payable 400,000 -
Discount on bonds payable (36,184) -

Stockholders' Equity
Common stock 130,000 18,000
Retained earnings 140,000 165
Total Liabilities and Stockholders' Equity $698,583 $24,200

Requirement:
1. Prepare the statement of cash flows using the indirect method.
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