Question
Here are comparative balance sheets for Tom Jones Company. TOM JONES COMPANY Comparative Balance Sheets December 31 Assets 2010 2009 Cash $72,710 $22,001 Accounts receivable
Here are comparative balance sheets for Tom Jones Company.
TOM JONES COMPANY
Comparative Balance Sheets
December 31
Assets 2010 2009
Cash $72,710 $22,001
Accounts receivable 85,652 76,161
Inventories 169,800 188,601
Land 75,070 100,300
Equipment 259,540 200,580
Accumulated depreciation (65,861) (32,198)
Total $596,911 $555,445
Liabilities and Stockholders' Equity
Accounts payable $39,209 $46,636
Bonds payable 151,530 203,230
Common stock ($1 par) 214,140 175,750
Retained earnings 192,032 129,829
Total $596,911 $555,445
Additional information:
1. Net income for 2010 was $101,690, depreciation was $33,663.
2. Cash dividends of $39,487 were declared and paid.
3. Bonds payable amounting to $51,700 were redeemed for cash $51,700.
4. Common stock was issued for $38,390 cash.
5. Land was sold for $25,230 cash, there was no loss.
6. Equipment was purchased for $58,960 cash.
Instructions
Prepare a statement of cash flows for 2010 using the indirect method. Use the template provided on the next page.
TOM JONES COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2010
Cash flows from operating activities
Net income
Adjustments to reconcile net income to
net cash provided by operating activities:
Net cash provided by operating activities
Cash flows from investing activities
Net cash provided by investing activities
Cash flows from financing activities
Net cash used by financing activities
Net Increase in cash
Cash at beginning of period
Cash at end of period
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