Problem - The following data are taken from the income statement and balance sheet of Keaner Machinery, Inc.,
Dec. 31, 2011 Jan. 1, 2011
Income statement:
Net Income ................................................................................ $385,000
Depreciation Expense ............................................................... 125,000
Amortization of Intangible Assets ........................................... 40,000
Gain on Sale of Plant Assets ..................................................... 90,000
Loss on Sale of Investments ..................................................... 35,000
Balance Sheet
Accounts Receivable .................................................................. $335,000 $380,000
Inventory ..................................................................................... 503,000 575,000
Prepaid Expenses ....................................................................... 22,000 10,000
Accounts Payable (to merchandise suppliers) ...................... 379,000 410,000
Accrued Expenses Payable ........................................................ 180,000 155,000
Using this information, prepare a partial statement of cash flows for the year ended December 31, 2011, showing the computation of net cash flows from operating activities by the indirect method.