Q.3 (10)

The Balance Sheet data of Wallace, Ins, as follow:

Assets Jan.01, 2004 Dec.31, 2004

Cash $30000 $10000

Account Receivable 60000 70000

Inventory 70000 85000

Prepaid Expense 10000 12500

Land, Building Equipment 85000 125000

Allowances for Dep. (25000) (30000)

Liabilities and Capital,

Accrued expenses $5,000 $7500

Account Payable 40000 52500

Bonds Payable 50000 40000

Capital Stock at Par 100000 125000

Additional Paid in Capital 10000 15000

Land and building were acquired in exchange for capital stock; the assets were recorded

at $30000 their appraised value. Equipment was acquired for $10000 cash. Net income

for the year was $45000 and cash dividends paid Rs. 27500.

Required: Prepare cash flow statement.