cash Flow (15 pts.) The following information is available for two small company we are considering buying: Eldridge Company Balance Sheets At December 31 2009 2008 Assets: Cash. Accounts receivable ...... Merchandise inventory... Long-term investments ..... Machinery ....... Accumulated depreciation .. Total assets..... $ 29,568 $ 27,648 38,616 35,280 87,750 74,052 67,080 67,680 210,600 174,600 (40.260) 37.440) $393 354 $341.820 S 78,000 12,870 58.500 S149,370 $ 48,456 12.240 79.200 $139,896 Liabilities: Accounts payable.... Income taxes payable... Bonds payable Total liabilities. Equity: Common stock... Contributed capital in excess of par Retained earnings Total equity ........... Total liabilities and equity ............ 140,400 15,600 87.984 $243.984 $393 354 115,200 10,800 75.924 $201.924 $341.820 Eldridge Company Income Statement For Year Ended December 31, 2009 Sales ....... $288,000 Cost of goods sold........ $97,080 Depreciation expense ...... 35.280 Other operating expenses..... 57,600 Interest expense...... 2.400 (192,360) Other gains (losses): Loss on sale of equipment... (10.080) Income before taxes....... 85,560 Income taxes expense....... 33.180 Net income............ $ 52,380 Prepare the statement of cash flows for the year ended December 31. Additional information includes: () There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old machinery with an original cost of $45,060. (3) New machinery was purchased for $81,060 cash. (4) The only changes affecting retained earnings are net income and cash dividends paid, (5) Additional shares of stock were issued for cash