Comparative Balance Sheet
December 31
Assets, 2011, Cash $15,200, Account Receivable $25,200, Investments $20,000, Equipment $60,000, Accumulated Depreciation ($14,000), Total $106,400.
Assets, 2010, Cash $17,700, Account Receivable $22,300, Investments $16,000, Equipment $70,000, Accumulated Depreciaton ($10,000), Total $116,000.
Liabilities and Stockholders' Equity
2011, Account Payable $14,600, Bonds Payable $10,000, Common Stock $50,000, Retained Earnings $31,800, Total $106,400.
2010, Account Payable $11,100, Bonds Payable $30,000, Common Stock $45,000, Retained Earning $29,900, Total $116,000.
Additional Information:
1. Net income was $18,300. Dividends declared and paid were $16,400
2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300
3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. (Hint: the accumulated depreciation between the two years is the depreciation for the period)
Prepare a statement of cash flows for 2011 using the indirect method.