Problem: Please follow the questions, and balance sheet and Income statement are illustrated below.
Additional Information:
Eldridge Company
Balance Sheets
31-Dec
| Assets |
|
|
|
2009 |
2008 |
| Cash |
|
|
|
$29,568 |
$27,648 |
| Accounts Receivable |
|
$38,616 |
$35,280 |
| Merchandise Inventory |
|
$87,750 |
$74,052 |
| Long-term Investments |
|
$67,080 |
$67,680 |
| Machinery |
|
|
$210,600 |
$174,600 |
| Acculated Depreciation |
|
($40,260) |
($341,440) |
| Total assets |
|
|
$393,354 |
$341,820 |
|
|
|
|
|
|
| Liabilities |
|
|
|
|
| Accounts Payable |
|
|
$78,000 |
$48,456 |
| Income taxes payable |
|
$12,870 |
$12,240 |
| Bonds Payable |
|
|
$58,500 |
$79,200 |
| Total Liabilities |
|
|
$149,370 |
$139,896 |
|
|
|
|
|
|
| Equity |
|
|
|
|
|
| Common Stock |
|
|
$140,400 |
$48,456 |
| Contributed capital in excess of par |
$15,600 |
$12,240 |
| Retained Earnings |
|
|
$87,984 |
$79,200 |
| Total Equity |
|
|
$243,984 |
$201,924 |
| Total Liabilities and Equity |
|
$393,354 |
$341,820 |
Eldridge Company
Income Statement
For year Ended December 31,2009
| Sales |
|
|
|
|
$288,000 |
| Cost of Goods Sold |
|
|
$97,080 |
|
| Depreciation Expense |
|
$35,280 |
|
| Other operating Expenses |
|
$57,600 |
|
| Interest Expense |
|
|
$2,400 |
($192,360) |
| Other Earnings |
|
|
|
|
| Los on sale of Equipment |
|
|
($10,080) |
| Income before taxes |
|
|
$85,560 |
| Income taxes Expense |
|
|
$33,180 |
| Net Income |
|
|
|
$52,180 |
1. There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
2. Old machinery with an original cost of $45,060 was sold for $2,520 cash.
3. New machinery was purchased for $81,060 cash.
4. Cash dividends of $ 40,320 were paid.
5. Additional shares of stock were issued for cash
Prepare a complete statement of cash flows for calendar-year 2009 using the indirect method.