Ex. 190

Condensed financial data of Popler Company appear below:

POPLER COMPANY

Comparative Balance Sheet

December 31

20102009

Assets

Cash$61,000$35,000

Accounts receivable75,00053,000

Inventories120,000132,000

Prepaid expenses19,00025,000

Investments100,00075,000

Plant assets325,000250,000

Accumulated depreciation(65,000)(60,000)

Total$635,000$510,000

Liabilities and Stockholders' Equity

Accounts payable$93,000$75,000

Accrued expenses payable29,00024,000

Bonds payable120,000160,000

Common stock275,000170,000

Retained earnings118,00081,000

Total$635,000$510,000

POPLER COMPANY

Income Statement

For the Year Ended December 31, 2010

Sales$470,000

Less:

Cost of goods sold$300,000

Operating expenses (excluding depreciation)60,000

Depreciation expense17,000

Income taxes20,000

Interest expense18,000

Loss on sale of plant assets3,000418,000

Net income$52,000

Additional information:

1.New plant assets costing $100,000 were purchased for cash in 2010.

2.Old plant assets costing $25,000 were sold for $10,000 cash when book value was $13,000.

3.Bonds with a face value of $40,000 were converted into $40,000 of common stock.

4.A cash dividend of $15,000 was declared and paid during the year.

5.Accounts payable pertain to merchandise purchases.

Instructions

Prepare a statement of cash flows for the year using the direct method.