Memphis Corp., a merchandiser, recently completed its 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow. MEMPHIS CORPORATION Comparative Balance Sheets December 31, 2011 and 2010 2011 2010 Assets Cash $ 165,000 $ 130,000 Accounts receivable 83,000 72,000 Merchandise inventory 620,000 520,000 Equipment 325,000 281,000 Accum. depreciation?Equipment (155,000) (101,000) Total assets $1,038,000 $ 902,000 Liabilities and Equity Accounts payable $ 140,000 $ 113,000 Income taxes payable 24,000 21,000 Common stock, $2 par value 592,000 570,000 Paid-in capital in excess of par value, common stock 194,000 161,000 Retained earnings 88,000 37,000 Total liabilities and equity $1,038,000 $ 902,000 MEMPHIS CORPORATION Income Statement For Year Ended December 31, 2011 Sales $1,793,000 Cost of goods sold 1,088,000 Gross profit 705,000 Operating expenses Depreciation expense $ 54,000 Other expenses 495,000 549,000 Income before taxes 156,000 Income taxes expense 20,000 Net income $ 136,000 Additional Information on Year 2011 Transactions a. Purchased equipment for $44,000 cash. b. Issued 11,000 shares of common stock for $5 cash per share. c. Declared and paid $85,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Memphis Corp., a merchandiser, recently completed its 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow. MEMPHIS CORPORATION Comparative Balance Sheets December 31, 2011 and 2010 2011 Assets Cash Accounts receivable Merchandise inventory Equipment Accum. depreciationEquipment Total assets Liabilities and Equity Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 2010 $ 165,000 83,000 620,000 325,000 (155,000) $1,038,000 $ 130,000 72,000 520,000 281,000 (101,000) $ 902,000 $ 140,000 24,000 592,000 $ 113,000 21,000 570,000 194,000 161,000 88,000 $1,038,000 37,000 $ 902,000 MEMPHIS CORPORATION Income Statement For Year Ended December 31, 2011 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $1,793,000 1,088,000 705,000 $ 54,000 495,000 549,000 156,000 20,000 $ 136,000 Additional Information on Year 2011 Transactions a. b. c. Purchased equipment for $44,000 cash. Issued 11,000 shares of common stock for $5 cash per share. Declared and paid $85,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) MEMPHIS CORPORATION Statement of Cash Flows For Year Ended December 31, 2011 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash Operating activities Accounts receivable Inventory Accounts payable Taxes payable $ Net cash operating activities Cash flows from investing activities Cash flows from financing activities Net cash financing activities $ Cash balance at December 31, 2010 Cash balance at December 31, 2011 $