Preparation of a Statement of Cash Flows. The president of The Hardcastle Corporation that a statement of cash flows is one of the required financial statements. He asks your ance in preparing the statement. He provides you with the following comparative balance sheets for understands assistance 2011 and 2010, as well as the income statement for the year ended December 31, 2011. THE HARDCASTLE CORPORATION Comparative Balance Sheets December 31 Assets 2011 2010 Current assets: Cash Accounts receivable Inventory Prepaid expenses s 5.200 20,000 47,000 s 4,200 28,000 33,000 Total current assets $ 66,200 Property, plant, and equipment: Land Machinery and equipment, net Buildings, net S 3,800 8,700 $ 2,800 8 ,500 Total property, plant, and equipment Other assets: Patents, net Total assets Liabilities and Owners' Equity 2011 2010 Current liabilities: Notes payable Current maturities of long-term debt Accounts payable Accrued liabilities s 4,000 2,000 5,500 5,800 1,900 6,000 Total current liabilities $26.500 Long-term debt: Stockholders' equity: Common stock, no par Retained earnings 61,000 24.200 $60,000 Total stockholders' equity Total liabilities and stockholders' equity $129.700 12 (continued ) Preparation of a Statement of Cash Flows. The president of The Hardcastle Corporation that a statement of cash flows is one of the required financial statements. He asks your ance in preparing the statement. He provides you with the following comparative balance sheets for understands assistance 2011 and 2010, as well as the income statement for the year ended December 31, 2011. THE HARDCASTLE CORPORATION Comparative Balance Sheets December 31 Assets 2011 2010 Current assets: Cash Accounts receivable Inventory Prepaid expenses s 5.200 20,000 47,000 s 4,200 28,000 33,000 Total current assets $ 66,200 Property, plant, and equipment: Land Machinery and equipment, net Buildings, net S 3,800 8,700 $ 2,800 8 ,500 Total property, plant, and equipment Other assets: Patents, net Total assets Liabilities and Owners' Equity 2011 2010 Current liabilities: Notes payable Current maturities of long-term debt Accounts payable Accrued liabilities s 4,000 2,000 5,500 5,800 1,900 6,000 Total current liabilities $26.500 Long-term debt: Stockholders' equity: Common stock, no par Retained earnings 61,000 24.200 $60,000 Total stockholders' equity Total liabilities and stockholders' equity $129.700 12 (continued )