2009 $ 35.000 53,000 132.000 25,000 75,000 250.000 (60.000 $510.000 26.000 22.000 - 14.000 - 3.600 25,000 +5.000 5000 125,000 Condensed financial data of Mennan Company appear below MENNAN COMPANY Comparative Balance Sheet December 31 2010 Assets Cash $ 61,000 Accounts receivable 75,000 Inventories 118.000 Prepaid expenses 21.000 Investments 100,000 325,000 Plant assets Accumulated depreciation (65.000 Total 5635.000 Liabilities and Stockholders' Equity Accounts payable $ 98,000 Accrued expenses payable 24.000 Bonds payable 120,000 Common stock 275,000 Retained earnings 118.000 Total $635.000 MENNAN COMPANY Income Statement For the Year Ended December 31, 2010 Sales Less: Cost of goods sold $310.000 Operating expenses (excluding depreciation) 50,000 Depreciation expense 17,000 Income taxes 20,000 Interest expense 18,000 Loss on sale of plant assets 3.000 Net income $ 75,000 24,000 160,000 170,000 81.000 $510.000 23.000 -40,000 105,000 37.000 $470,000 418.000 $ 52.000 Additional information: 1. New plant assets costing $100,000 were purchased for cash in 2010. 2. Old plant assets costing $25,000 were sold for $10,000 cash when book value was $13,000. 3. Bonds with a face value of $40,000 were converted into $40,000 of common stock. Instructions Prepare a statement of cash flows for the year using the indirect method. Page - 1 - of 1