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 532,880 349,400 320,880 0 164,000 352,560 83.200 1.636,520 292,960 104,480 308,560 120,000 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 1,097,160 1,636,520 202,480 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 $140,000 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 were no withdrawals, no investments by shareholders, and no sale of additional stock. No dividends were paid or declared