Kooler Company

Balance Sheet

December 31 2004 2005

Cash 9,600 20,800

Accounts Receivable (net) 18,400 36,700

Inventory 32,000 43,000

Investments in trading securities 17,000 0

Property, Plant & Equipment 120,000 184,200

Accumulated Depreciation (24,000) (32,400)

Totals 173,000 252,300

Accounts Payable 22,700 20,200

Notes Payable, short term 15,000 22,800

(nontrade)

Long-term Notes Payable 26,000 56,000

Common Stock 82,000 102,000

Retained Earnings 27,300 51,300

Totals 173,000 252,300

Additional data:

1. Net income for the year 2005, $54,000

2. Sold machinery costing $30,000 with a book value of $12,000 for $15,000.

3. Sold the investments for $15,000

4. Paid dividends of $30,000

5. Purchased machinery and gave a $50,000 long-term note payable

6. Paid a $20,000 long-term note payable by issuing common stock.

7. Accounts receivable written off during the year, $2,500.

8. Bad Debt Expense for the year 2005, $19,000

9. Cash inflow from customers in 2005, $459,000.

Requirements:

a. On the next page, prepare a statement of cash flows (in good form) for the year ended December 31, 20x5. Use the indirect approach to disclose the cash flows from operating activities.