A-2.2 The following are the comparative balance sheets for Wilson Sports Limited. Wilson Sports Limited Balance Sheet December 31, 2010 December 31, 2009 Assets Current assets Cash 500,000 600,000 Accounts receivable 600,000 450,000 Inventory 1,200,000 1,000,000 Prepaid insurance 50.000 62,000 Total current assets 2,350,000 2.112,000 Property, plant, and equipment Land 170,000 170,000 Building 500,000 400,000 Less: Accum. depreciation-Building (125,000) (100,000) Building, net 375,000 300,000 Machinery 325,000 285,000 Less: Accum, depreciation-Machinery (120,000) (105,000) Machinery, net 205,000 180,000 Total P.P.E. 750,000 650,000 Copyrights Intangible assets Total assets 44,000 3,144,000 63,000 2,825,000 Current liabilities Accounts payable 346.000 Unearned revenues 50,000 420,000 20.000 Total current liabilities 396,000 440,000 Long-term liabilities Bonds payable 1,000,000 Bank loans payable 400,000 1,200,000 100,000 Total long-term liabilities 1,400,000 1,300,000 Total liabilities 1,796,000 1,740,000 Shareholders' equity Common shares 1,000,000 Retained earnings 348,000 800,000 285.000 Total shareholders' equity 1,348,000 1,085,000 3,144,000 2,825,000 Total liabilities and shareholders' equity Other information a. Net income for 2010 was $200,000 b. Dividends paid in 2010 were $137,000 c. No buildings or machinery were sold in 2010. d. Copyrights with a book value of $10,000 were sold for $50,000 in 2010. e. There were no gains or losses on bond transactions in 2010 f. No unearned revenues from 2009 were transferred to revenues earned in 2010 Required: (a) Prepare the cash flow statement for 2010 for Wilson Sports Limited. (b) Prepare a short summary using the cash flow statement of Wilson's activities in 2010. Copyright 2012 Pearson Canada Inc.