Comparative balance sheet accounts of Spartacus Company are presented below.

Spartacus Company
Comparative Balance Sheet Accounts
As of December 31, 2015 and 2014
December 31
2015
2014

Debit Accounts
Cash
Accounts Receivable
Inventory
Investments
Machinery
Buildings
Land
Totals

$ 19,400
87,100
35,700
24,600
41,200
71,300
17,400
$296,700

$ 27,500
95,700
26,400
31,700
20,900
32,800
9,600
$244,600

$ 3,300
4,700
15,600
28,900
4,100
43,200
126,500
70,400
$296,700

$ 2,600
3,900
8,500
31,300
5,300
28,200
110,000
54,800
$244,600

Credit Accounts
Allowance for Doubtful Accounts
Acc. Depreciation Machinery
Acc. Depreciation Buildings
Accounts Payable
Accrued Payables
Long-Term Notes Payable
Common Stock, no-par
Retained Earnings
Totals
Additional Data
1.
2.
3.
4.
5.

Net income for the year was $51,700.

Cash dividends declared and paid during the year were $19,600.
A 15% stock dividend was declared during the year.
Investments that cost $17,200 were sold during the year for $16,900.
Machinery that cost $4,800, on which $1,100 of depreciation had accumulated, was
sold for $4,300.

Instructions Prepare a statement of cash flows using the indirect method.

Statement of Cash Flows
For the year ended December 31, 2015
Cash flows from operating activities
Net Income....................................................
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense..................................

$51,700
9,000

Loss on Sale of Investments........................

300
Gain on Sale of Machinery...........................
(600)
Decrease in Net Accounts Receivable............... 9,300
Increase in Inventory...................................
(9,300)
Decrease in accounts payable....................
(2,400)
Decrease in accrued payables....................
(1,200)
Net Cash provided by operating activities..
Cash flows from investing activities
Purchase of investments
(24,600-(31,700-17,200).................................
Purchase of Machinery
(41,200-(20,900-4,800)...................................
Addition to buildings........................................
Addition to land.
Sale of Investments.........................................
Sale of Machinery............................................
Net Cash used by investing activities.............
Cash flows from financial activities
Addition to long term notes payable................
Cash Dividends paid.......................................
Net cash used in financing activities.
Net increase in cash.........................................
Cash, January 1, 2015.....................................
Cash, December 31, 2015..
Cash, December 31, 2015...............................

56,800

(10,100)
(25,100)
(38,500)
(7,800)
16,900
4,300
(60,300)
15,000
(19,600)
(4,600)
(8,100)
27,500
19,400
19,400