The following information is available for two small company we are considering buying: Eldridge Company Balance Sheets At December 31 2009 2008 Assets: Cash. Accounts receivable................ Merchandise inventory.......... Long-term investments ...... Machinery.. Accumulated depreciation Total assets....... $ 29,568 38.616 87.750 67,080 210.600 (40,260) $323.354 S 27,648 35.280 74,052 67.680 174,600 (37,440) $141.820 $ 78,000 12,870 58,500 $149.370 $ 48,456 12,240 79.200 $139.896 Liabilities: Accounts payablc. . Income taxes payable............ Bonds payable... Total liabilities... Equity: Common stock... Contributed capital in excess of par...... Retained earnings........ Total equity.... .... .. Total liabilities and equity.................... 140,400 15,600 87.984 $243.984 $393.354 115.200 10.800 75.924 $201.924 $341,820 35.280 Eldridge Company Income Statement For Year Ended December 31, 2009 Sales... S288,000 Cost of goods sold... $97,080 Depreciation expense................ Other operating expenses.... 57,600 Interest expense... 2.400 (192,360) Other gains (losses): Loss on sale of equipment. (10.080) Income before taxes............. 85.560 Income taxes expense...... 33.180 Net income... $ 52.380 Prepare the statement of cash flows for the year ended December 31. Additional information includes: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old machinery with an original cost of $45,060. (3) New machinery was purchased for $81,060 cash. (4) The only changes affecting retained earnings are net income and cash dividends paid. (5) Additional shares of stock were issued for cash