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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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