Question:
The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are presented below.
FARMER COMPANY
Comparative Balance Sheets
December 31, December 31,
ASSETS 2011 2010
Cash $ 14,000 $ 9,000
Accounts receivable 52,000 24,000
Inventory 87,000 40,000
Equipment 125,000 100,000
Accumulated depreciation (42,000) (34,000)
Prepaid expenses 4,000 2,000
Land -0- 7,000
Building 50,000 -0-
Total Assets $290,000 $148,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 25,000 $ 14,000
Interest payable 8,000 6,000
Taxes payable 37,000 11,000
Note payable 37,000 32,000
Bonds payable 75,000 50,000
Common stock, $10 par 75,000 25,000
Retained earnings 33,000 10,000
Total Liabilities and Stockholders' Equity $290,000 $148,000
Additional 2011 information:
Net income, $31,000
Sold land for gain of $3,000
Paid dividends of $8,000
Issued $50,000 stock to purchase building
Required:
Using the indirect method, write a statement of cash flows for 2011 for Farmer Company using the form below. Include any required disclosures for noncash investing and financing transactions.