BBB Company€™s balance sheet and income statement follow:

Required
a. Prepare a statement of cash flows for the year ended December 31, 2009. (Present the cash flows from operations using the indirect method.)
b. Comment on the statement of cashflows.

BBB Company Balance Sheet December 31, 2009 and 2008 December 31 2009 2008 A ssets Cash Marketable securities Accounts receivable Inventories S 4,500 2,500 6,800 S 4,000 2,000 7,200 Total current assets 21,300 21,200 December 3 2009 2008 Land Equipment Accumulated depreciation equipment Building Accumulated depreciation building 11,000 24,000 (3,800) 70,000 12,000 20,500 (3.000) 70,000 (12.000) 108,700 (14 Total assets Liabilities and Stockholders' Equity Accounts payable Wages payable Taxes payable $108,500 Total current liabilities Bonds payable Common stock, S10 par Additional paid-in capital Retained eamings $ 7,800 1,050 500 9,350 30,000 32,000 21,000 S 7,000 1,000 1500 9.500 30,000 30,000 19,200 20,000 $108,700 Total liabilities and stockholders' equity $108,500 BBB COMPANY Income Statement For Year Ended December 31, 2009 Sales Operating expenses: $38,000 Depreciation expense Other operating expenses S 2,800 35,000 Operating income Gain on sale of land Income before tax expense Tax expense Net income 37,800 200 800 1,000 500 S 500 Supplemental information Dividends declared and paid Land sold for cash Equipment purchased for cash Common stock sold for cash S 4,350 1,800 3,500 3,800