ww The financial statements of Meenan Company appear below: MEENAN COMPANY Comparative Statement of Financial Position Property, plant, and equipment Accumulated depreciation Merchandise inventory Accounts receivable Cash Total Share capital-ordinary Retained earnings Bonds payable Accounts payable Income taxes payable Total December 31,2011 Assets 2011 2010 50,000 78,000 (20,000) (24,000) 30,000 15,000 26,000 34,000 38,000 23,000 124,000 126.000 Equity and Liabilities 41,000 24,000 46,000 38,000 7,000 33,000 17,000 23,000 13,000 8,000 124,000 126,000 MEENAN COMPANY Income Statement For the Year Ended December 31, 2011 Instructions (a) Prepare a statement of cas Ans Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income The following additional data were provided: 1. Dividends declared and paid were 41,000. 400,000 280,000 120,000 46,000 74,000 4,000 70,000 21,000 49.000 2. During the year, equipment was sold for 15,000 cash. This equipment cost 28,000 originally and had a book value of 15,000 at the time of sale. 3. All depreciation expense is in the operating expenses. 4. All sales and purchases are on account. 5. Accounts payable pertain to merchandise suppliers. 6. All operating expenses except for depreciation were paid in cash. Instructions (a) Prepare a statement of cash flows for Meenan Company using the indirect method. Ans: (b) Prepare a statement of cash flows for Meenan Company using the direct method. (Just show the operating activities part)