Question - Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.
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FULTON CORP. COMPARITIVE BALANCE SHEET AS OF DECEMBER 31, 2008 AND 2007
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2008
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2007
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Cash
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$800
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$600
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Investments
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-
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200
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Receivables
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2,250
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2,100
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Inventory
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1,600
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1,200
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Plant assets
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1,600
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1,200
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Accumulated depreciation
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(600)
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(455)
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$5,560
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$4,845
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Accounts payable
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$750
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$1,200
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Accrued liabilities
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330
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520
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Bonds payable
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800
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1,000
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Capital stock
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1,500
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1,400
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Retained earnings
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2,270
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725
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$5,650
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$4,845
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FULTON COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2008
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Sales
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$15,200
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Cost of goods sold
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10,400
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Gross profit
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4,800
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Selling and admin expenses
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1,205
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Income from operations
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3,595
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Other revenues and gains
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|
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Loss on sale of investments
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50
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Income before income tax
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3,545
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Income tax expense
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1,400
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Net income
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2,145
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Cash dividends
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600
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Income retained in business
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$1,545
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Additional information: During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2008.
Instructions - Prepare a statement of cash flows using the direct method.