28. Statement of cash flows (L04) Prepare a statement of cash flows for the Jeter Corporation. Follow the general procedures indicated in Table 2-10. JETER CORPORATION Income Statement For the Year Ended December 31, 2010 Sales $ 3,300,000 Cost of goods sold 1.950.000 Gross profits 1,350,000 Selling and administrative expense 650,000 Depreciation expense 230,000 Operating income 470,000 Interest expense 80.000 Earnings before taxes 390,000 Taxes 140,000 Earnings after taxes 250,000 Preferred stock dividends 10,000 Earnings available to common stockholders 240,000 Shares outstanding 150,000 Earnings per share $ 1.60 Statement of Retained Earnings For the Year Ended December 31, 2010 Retained earnings, balance, January 1, 2010 $800,000 Add: Earnings available to common stockholders, 2010 240,000 Deduct: Cash dividends declared and paid in 2010 140,000 Retained earnings, balance, December 31, 2010 $900,000 Comparative Balance Sheets For 2009 and 2010 Year-End Year-End Assets 2009 2010 Current assets: Cash $ 100,000 $120,000 Accounts receivable (net) 500.000 510,000 Inventory 610,000 640,000 Prepaid expenses 60,000 30,000 Total current assets 1,270,000 1,300,000 Investments (long-term securities) 90,000 80,000 Plant and equipment 2,000,000 2,600,000 Less: Accumulated depreciation 1,000,000 1,230,000 Net plant and equipment 1.000.000 1.370.000 Total assets $2.360,000 $2.750,000 Year-End Year-End Liabilities and Stockholders' Equity 2009 2010 Current liabilities: Accounts payable $ 300,000 $ 350,000 Notes payable 500,000 500,000 Accrued expenses 70.000 50.000 Total current liabilities 870,000 1,100,000 Long-term liabilities: Bonds payable, 2015 100.000 160,000 Total liabilities 970,000 1,260,000 Stockholders' equity: Preferred stock, $100 par value 90,000 90,000 Common stock, $1 par value 150,000 150,000 Capital paid in excess of par 350,000 350,000 Retained earnings 800,000 900.000 Total stockholders' equity 1.390,000 1.490.000 Total liabilities and stockholders equity $2.360.000 $2.750.000