CASE (80%)

STATEMENT OF CASH FLOWS

1. Below is ABC company balance sheet and income statement

ABC COMPANY Balance Sheet December 31, 2011 and 2010 December 31, 2011 2010 Assets Cash 4.500 4.000 Marketable securities 2.500 2.000 Account receivable 6.800 7.200 Inventories 7.500 8.000 Total current assets 21.300 21.200 Land 11.000 12.000 Equipment 24.000 20.500 Accumulated depreciation - equipment (3.800) (3.000) Building 70.000 70.000 Accumulated depreciation- building (14.000) (12.000) Total assets 108.500 108.700 Liabilities and Stockholders' EquityAccount payable 7.800 7.000 Wages payable 1.050 1.000 Taxes payable 500 1.500 Total current liabilities 9.350 9.500 Bond payable 30.000 30.000 Common stock, $10 par 32.000 30.000 Additional paid-in capital 21.000 19.200 Retained earnings 16.150 20.000 Total liabilities and stockholders' equity 108.500 108.700 ABC COMPANY Income Statement For Year Ended December 31, 2011 Sales 38.000 Operating expense Depreciation expenses 2.800 Other operating expenses 35.000 (37.800) Operating income 200 Gain on sale of land 800 Income before tax expense 1.000Tax expense (500) Net income 500 Supplemental information Dividends declared and paid 4.350 Land sold for cash 1.800 Equipment purchased for cash 3.500 Common stock sold for cash 3.800