indirect and direct method

P6-10 (Preparation of Statement of Cash Flows) Condensed financial data of Elly Inc. follow. Ins Comparative Balance Sheets December 31 Re fe Assets Cash Accounts receivable Inventories Prepaid expenses Investments Plant assets Accumulated depreciation 2008 97,800 95,800 112,500 28,400 128,000 270,000 (50,000) $682,500 $48,400 b) 26,000 114,000 242,500 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $102,000 16,500 110,000 220,000 234,000 $682,500 67,300 17,000 150,000 175,000 105,450 Total $514,750 Elly Inc. Income Statement Data For the Year Ended December 31, 2008 Sales $392,780 Less $135,460 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income taxes Interest expense Loss on sale of plant assets 12,410 46,500 7,280 213,880 $178,900 Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $50,350 was declared and paid during the year Instructions