Refer to the financial statements and other data in Problem 15-36.

Required:

Prepare a statement of cash flows by using the direct method.

Problem 15-36

Transcribed Image Text:

Richmoon Corporation Comparative Balance Sheets December 31, 2009 and 2010 2009 2010 Assets $ 5,500 15,000 3,000 20,000 $ 9,000 Cash Accounts receivable, net 12,000 6,000 20,000 Inventory Plant and equipment Accumulated depreciation (4,000) $39,500 (5,000) $42,000 Total assets Liabilities and equity Accounts payable Common stock $ 6,400 21,200 11,900 $ 2,000 23,000 17,000 $42,000 Retained earnings Total liabilities and equity $39,500 Richmoon Corporation Income Statement For the Year Ended December 31, 2010 $ 33,000 (19,500) $ 13,500 (6,500) $ 7,000 Sales Less: Cost of goods sold Gross margin Less: Operating expenses Net income