1. Accountants for Smithson, Inc., have assembled the following data for the year ended December 31, 2011:

Requirement

Prepare Smithsons Statement of Cash Flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.

2011 2010 Current Accounts: Current assets: 105,600 26,000 Accounts receivable 64,200 Inventories 85,000 85,00069,300 83,000 Current liabilities Accounts payable Income tax payable 57,800 15,000 56,000 16,700 Transaction Data for 2011 Issuance of common stock Payment of note payable s45,100 Depreciation expense Purchase of equipment Acquisition of land by issuing 18,000 71,000 Issuance of note payable to borrow cash Gain on sale of building ng4,500 Cost basis of building sold 56,000