The following information is from the accounting records of Office Supplies, Inc., for the fiscal years 2011 and 2010:

Task:

a. Prepare a working paper for a statement of cash flows.

b. Prepare a statement of cash flows under the indirect method. Also prepare any necessary supplemental schedule(s).

2011 2010 Assets Cash $ 66,250 $ 61,000 Accounts receivable, net 84,000 42,000 Merchandise inventory 42,000 48,250 Prepaid expenses 7,875 12,125 Land 94,500 78,750 Buildings 199,500 147,000 Accumulated depreciation - buildings (31,500) (26,250) Equipment 257,250 210,000 Accumulated depreciation equipment (78,750) (63,000) Total assets $641,125 $509,875 Liabilities and stockholders' equity Accounts payable $73,500 $ 47,250 Accrued liabilities payable 50,500 55,750 Five-year note payable 52,500 -0- Capital stock-$50 par 420,000 367,500 Retained earnings 39,375 Total liabilities and stockholders' equity $641,125 $509,875 Net income for year ended 2011 June 30, was USD 56,250. Additional land was acquired for cash, USD 15,750. No equipment or building retirements occurred during the year. Equipment was purchased for cash, USD 47,250. The five-year note for USD 52,500 was issued to pay for a building erected on land leased by the company. Stock was issued at par for cash, USD 52,500. Dividends declared and paid were USD 51,000. The company paid interest of USD 10,000 and income taxes of USD 40,000