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MICHAEL JACKSON GREATEST STAR EVER COMPANY Comparative Balance Sheets For period Ending Dec. 31 Assets 2008 2007 Cash 77,380 23,320 Accounts receivable 90,100 80,560 Inventories
| MICHAEL JACKSON GREATEST STAR EVER COMPANY | ||||
| Comparative Balance Sheets | ||||
| For period Ending Dec. 31 | ||||
| Assets | 2008 | 2007 | ||
| Cash | 77,380 | 23,320 | ||
| Accounts receivable | 90,100 | 80,560 | ||
| Inventories | 180,200 | 200,340 | ||
| Land | 79,500 | 106,000 | ||
| Equipment | 275,600 | 212,000 | ||
| Accumulated depreciation | (69,960) | (33,920) | ||
| Total | 632,820 | 588,300 | ||
| Liabilities and Stockholders' Equity | ||||
| Accounts payable | 41,340 | 49,820 | ||
| Bonds payable | 159,000 | 212,000 | ||
| Common stock ($1 par) | 228,960 | 184,440 | ||
| Retained earnings | 203,520 | 142,040 | ||
| Total | 632,820 | 588,300 | ||
| Additional information: | ||||
| Net income for 2008 was $109,180. | ||||
| Cash dividends of $47,700 were declared and paid. | ||||
| Bonds payable amounting to $53,000 were redeemed for cash $53,000. | ||||
| Common stock was issued for $44,520 cash. | ||||
| No equipment was sold during 2008. | ||||
| Instructions: Prepare a statement of cash flows for 2008 using the indirect method. (19 pts) | ||||
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