Financial Accounting 2

Prepare a statement of cash flows using the indirect method for the year ended December 31, 2009 for the image above.

CLASS EXERCISE Using the information for thc Keruwood Company included below. prepare a statement of cash flows using the indirect method. Net income for 2009 was $121,000 Deseun er 3 20US 2009 Assets urtcat assets counts receivahle net of Allowance for doubtful 40,000 accounts of $10,000 and S8,WO, teSTectively) 150,000 Total cur ent asse 325,00 Land. Plant and ainmerl Less: Mo utruleled depreciation..... A.000 Patents Total asscts Liabilities and Stockholders' Equity Liabilities S 200 Accounts payabl 110.000 Salaries and wages payah ax Paya. 000 30,000 Bonds ayah 12 5.2020 ab Stockholders' ity Common stock. par value S5, d 10 lares, issued and outstan 50.000 and 42 50 210.000 shares, respuetivcl Additional paid in capital 202,000l Retained earnin E Total stockholders' equity 326 Total liabilities and stocki ders' e Selected accounts and transactions a on Fcbruary 1, 2009, Kenwood issued a 10 percent stock dividend to stockholders arrecord on March 1, 2009. The market price per share of the common stock on February 1, 2009, was $15 b On Mareh 1, 2009, Kenwood issued 3,800 shares of common stnck for land. The common stock had a current market value of approximately S40,000 on March l, 2009 e. On April 15, 2009, Kenwood repurchased its long-term bonds payable with a face value of $50,000 for $38,000 in cash d On June 30, 2009, Kenwood sold equipment that costs S53,000, with a book value of S23,000, for $19,000 in cash e, on September 30, 2009, Kenwood declared a eash dividend of 4 cents per share to stockholders a record on November 2009 f On October 10, 2009, Kenwood purchased land for $85,000 in cash