Condensed financial data of Oprah Company appear below and on shown below.

Additional information:
1. New plant assets costing $92,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $47,000 were sold for $15,550, resulting in gain of $8,750.
4. A cash dividend of $83,400 was declared and paid during the year.

Instructions
Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling item directly in the worksheet columns, using letters to cross-reference eachentry.

Transcribed Image Text:

OPRAH COMPANY Comparative Statements of Financial Position December 31 2011 2010 Assets Plant assets Accumulated depreciation Investments Inventories Accounts receivable Cash $250,000 (49.500) 84.500 121.900 90.800 92.700 $590,400 $205.000 (40,000) 87,000 102.650 57,000 47.250 $458,900 Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Accrued expenses payable 250.000 170.600 100,000 57.700 12.100 $590.400 $200,000 121,790 70,000 48,280 18,830 $458,900 OPRAH COMPANY Income Statement For the Year Ended December 31, 2011 Sales Gain on sale of plant assets S297.500 8,750 306.250 Less: $99.460 Cos of goods sold Operating expenses (excluding depreciation expense) Depreciation expense Income taxes Interest expense 14,670 49.700 7.270 2.940 174.040 Net income $132.210