8 Statement of Cash Flow (Indirect Method). Comparative balance sheet accounts of Marcus Inc. are presented below. MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2010 AND 2009 December 31 Debit Accounts 2010 2009 Cash $ 42,000 $ 33,73 0 Accounts Receivable 70,500 60,00 0 Merchandise Inventory 30,000 24,00 0 Investments (available-for-sale) 22,250 38,50 0 Machinery 30,000 18,75 0 Buildings 67,500 56,25 0 Land 7,500 7,500 Credit Accounts Allowance for Doubtful Accounts $2,250 $ 1,500 2,250 5,625 13,500 Accumulated Depreciation - Machinery Accumulated Depreciation - Buildings Accounts Payable Accrued Payables Long-Term Note Payable 9,000 24.750 35,000 3,375 2,625 21,000 31,00 Insert Table Chart Text Shape Media Comment Common Stock, no par 150,000 125,0 00 Retained Earnings 39,000 $249.750 $238.750 $269.750 52.38.750 Additional data (ignoring taxes): 1. Net income for the year was 542,500 2. Cash dividends declared and paid during the year were $21,125. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Investments that cost $25,000 were sold during the year for $28,750. S. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200 Sales $540,0 00 Cost of goods sold 380.0 00 Gross margin Less Operating expenses (includes $8,625 depreciation and $5,400 160,0 00 bad debts) 120,4 50 39,550 Income from operations Other: Ghin on sale of investments Loss on sale of machinery Marcus's 2010 Income Statement follows (ignoring taxes). $3,750 (800) 2,950 Net income $ 42.500 Required: Prepare a complete statement of cash flows using the Indirect Method. (Use the exhibit on page 840 of your text as you model in completing this assignment)! 253 words