The comparative balance sheet of Green Earth Lawn and Garden Inc. for December 31, 2008 and 2009, is as follows:
Assets
- 2009 2008
- Cash 137,900 142,300
- Accounts receivable net 206,800 190,500
- Inventories 290,500 284,100
- Investments 0 90,000
- Land 200,000 0
- Equipment 255,000 250,000
- Accumulated Deprec. (100,300) (76,700)
Liabilities and Stockholders equity
- Accts Payable merchandise cred 224,900 201,400
- Accrued Expens oprt expens. 14,100 16,500
- Dividends payable 21,000 19,000
- Common Stock $1 par 10,000 8,000
- Paid in capital in excess of par 200,000 100,000
- Retained earnings 519,900 490,300
989,900 835,200
The income statement for the year ended December 31 2009 is as follows
Sales 940,000
- Cost of merchandise sold 489,300
- Gross Profit 450,700
- Operating expenses
- Depreciation expenses 23,600
- Other operating expens 278,900
- Total operating expense 302,500
- Operating Income 148,200
Other income
- Gain on sale of investments 32,000
- Income before income tax 180,200
- Income tax expense 62,300
- Net income 117,900
The following additional information was taken from the records.
A. Equipment and land were acquired for cash
B. There were no disposals of equipment during the year
C. The investments were sold for 122,000 cash.
D. The common stock was issued for cash.
E. There was a 88,300 debit to Retained Earnings for cash dividends declared.
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.