Question
Given the following information, prepare the complete statement of cash flows. Use the indirect method of preparing the operations sections. Simon corporation Comparative balance sheets
Given the following information, prepare the complete statement of cash flows. Use the indirect method of preparing the operations sections.
Simon corporation Comparative balance sheets Dec 31, 2010 and 2009 | ||
| 2010 | 2009 |
Assets |
|
|
Cash | $174,000 | $117,000 |
Accounts receivable | 93,000 | 81,000 |
Merchandise inventory | 609,000 | 534,000 |
Equipment | 333,000 | 297,000 |
Accumulated depreciation: equipment | (156,000) | (102,000) |
Total assets | $1,053,000 | $927,000 |
|
|
|
Liabilities and equity |
|
|
Accounts payable | $69,000 | $96,000 |
Income taxes payable | 27,000 | 24,000 |
Common stock, $2 par value | 582,000 | 558,000 |
Paid-in capital in excess of par, common stock | 198,000 | 162,000 |
Retained earnings | 177,000 | 87,000 |
Total liabilities and equity | $1,053,000 | $927,000 |
Simon corporation Income statement For the year ended Dec 31, 2010 | ||
Sales |
| $1,992,000 |
Cost of goods sold |
| (1,194,000) |
Gross profit |
| $798,000 |
Operating expenses |
|
|
Depreciation expense | $(54,000) |
|
Other expenses | (501,000) | (555,000) |
Income before taxes |
| $243,000 |
Income tax expense |
| (42,000) |
Net income |
| $201,000 |
|
|
|
Additional information:
I. Purchased equipment for $36,000
II. Issued 12,000 shares of common stock for $5 cash per share
III. Declared and paid $111,000 in cash dividends
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