Cash Flow 1 Cash Flow 2 Cash Flow 3 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Assets 12/31/10 12/31/09 Cash Accounts Rec Inventories Investments Land Equipment Less: Accumulated Depreciation - Equipment 512,880 349,400 320,880 0 164,000 352,560 83.200 1,616,520 292,960 104,480 308,560 120,000 0 276,560 74.000 1,028,560 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Common Stock, $10 par Paid in capital in excess of par - common stock Retained earnings 214,240 21,120 64,000 240,000 1,077 160 1.616.520 202,480 26,320 57.600 140,000 602 160 1.028.560 The following additional information was taken from the records: The investments were sold for $130,000 cash. Equipment and land were acquired for cash. There were no disposal of equipment during the year. The common stock was issued for cash. There was a $475,000 credit to Retained Earnings for net income. No dividends were paid or declared