Balance Sheets at December 31
| Assets |
2010 |
2009 |
| Cash |
$24,640 |
$23,040 |
| Accounts Receivable |
$32,180 |
$29,400 |
| Merchandise inventory |
$73,125 |
$61,710 |
| Long Term investments |
$55,900 |
$56,400 |
| Equipment |
$175,500 |
$145,500 |
| Accumulated Depreciation |
$(33,550) |
$(31,200) |
| Total Assets |
$327,795 |
$284,850 |
|
|
|
| Liabilities |
|
|
| Accounts Payable |
$65,000 |
$40,380 |
| Income taxes payable |
$10,725 |
$10,200 |
| Bonds Payable |
$48,750 |
$66,000 |
| Total liabilities |
$124,475 |
$116,580 |
|
|
|
| Equity |
|
|
| common stock |
$117,000 |
$96,000 |
| Contributed capital in excess of par |
$13,000 |
$9,000 |
| Retained earnings |
$73,320 |
$63,270 |
| Total equity |
$203,320 |
$168,270 |
| Total liabilities and equity |
$327,795 |
$284,850 |
Income Statement for Year Ended December 31,2010
| Sales |
|
$240,000 |
| Cost of Goods Sold |
$80,900 |
|
| Depreciation Expense |
$29,400 |
|
| Other Operating Expenses |
$48,000 |
|
| Interest Expense |
2,000 |
($160,300) |
| Other Gains (losses) |
|
|
| Loss on sale of equipment |
|
($8,400) |
| Income before taxes |
|
$71,300 |
| Income taxes expense |
|
$27,650 |
| Net Income |
|
$43,650 |
Additional Information:
1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
3) New equipment was purchased for $67,550 cash.
4) Cash dividends of $33,600 were paid.
5) Additional share of stock were issued for cash.
Prepare a complete statement of cash flows for the 2010 calendar year using the indirect method.