On the basis of the following data for the LWB Corporation for the current year and the preceding year ended December 31, prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
December 31, 2009 December 31, 2008
Cash $75,700 $64,200
Accounts Receivable (net) 70,500 79,350
Inventories 99,500 87,500
Equipment 390,000 350,000
Accumulated Depreciation (150,000) (160,000)
TOTAL= 485,700 421,050
Accounts Payable - Trade 52,750 47,750
Cash Dividends Payable 10,000 12,500
Common Stock, $5 par 225,000 200,000
Premium on common stock 120,000 100,000
retained earnings 77,950 60,800
TOTAL= 485,700 421,050
The following additional data was obtained from the accounting records:
1. Equipment costing $90,000 was purchased for cash
2. Equipment costing $50,000 with accumulated depreciation of $35,000 was sold for $10,000
3. common stock was issued for cash
4. there was a $47,150 credit to retained earnings for net income.
5. there was a $30,000 debit to retained earnings for cash dividends declared.