Statement of Cash Flows (Indirect Method) Dair Company's income statement and comparative balance sheets follow. DAIR COMPANY Income Statement For Year Ended December 31, 2011 Sales 700,000 $ Cost of goods sold 440,000 Wages and other operating expenses 95.000 Depreciation expense 21.000 Amortization expense 6,000 Interest expense 10,000 Income tax expense 36,000 Loss on bond retirement 5,000 613,000 Net income 587,000 DAIR COMPANY Balance Sheets Dec 31, 2011 Dec 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable 54,000 48,000 Inventory 103,000 109,000 Prepaid expenses 12,000 10,000 Plant assets 360,000 336,000 Accumulated depreciation (86,000) (84,000) Intangible assets 44,000 50,000 Total assets $509,000 3487.000 Liabilities and Stockholders Equity Accounts payable 5 31,000 $ 26,000 Interest DAIR COMPANY Balance Sheets Dec 31, 2011 Dec 31, 2010 Assets Cash $ 22,000 $ 18,000 Accounts receivable Inventory Prepaid expenses 54,000 103,000 48,000 109,000 12,000 360,000 10,000 336,000 Plant assets (86,000) (84,000) Accumulated depreciation Intangible assets Total assets Liabilities 44,000 $509,000 50,000 $ 487,000 and $ 31,000 $ 26,000 3,000 7,000 6,000 8,000 Stockholders' Equity Accounts payable Interest payable Income tax payable Bonds payable Common stock Retained earnings Total liabilities and equity 60,000 120,000 252,000 228,000 157,000 98,000 $509,000 $ 487,000 Durres 2000 anda.com 16.000 and had to counted on 2010. Sed in exchange for 100.000 of brands payante and on 12.00 tired for this $28.000 de edred and cold 2011. Any stockings were forca Come change 2011 Wowowin BAISANT KATTINT OCAK ROW FOR PARED DECEMBER C OOO Cash Flows from Financing Activities Retirement of Bonds Payable Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year 0 0 0 $ 0 (0) Prepare separate schedules showing (1) cash paid for interest and for income taxes and (2) noncash investing and financing transactions. (1) Supplemental Cash Flow Disclosures Cash Paid for Interest $ 0 Cash Paid for Income Taxes $ 0 (2) Schedule of Noncash Investing and Financing Activities issuance of Bonds Payable to acquire Equipment $ 0 Check