Complete statement of cash flows using a spreadsheet

Question

Galley Corp., a merchandiser, recently completed its 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow.

GALLEY CORPORATION Comparative Balance Sheets December 31, 2011 and 2010
	2011			2010
Assets
Cash	$	156,327		$	134,694
Accounts receivable		101,303			93,003
Merchandise inventory		700,944			615,744
Equipment		439,149			343,149
Accum. depreciation-Equipment		(173,690)			(117,590)
Total assets	$	1,224,033		$	1,069,000
Liabilities and Equity
Accounts payable	$	69,000		$	100,000
Income taxes payable		31,094			27,794
Common stock, $2 par value		549,800			515,800
Paid-in capital in excess of par value, common stock		255,075			187,075
Retained earnings		319,064			238,331
Total liabilities and equity	$	1,224,033		$	1,069,000

 

GALLEY CORPORATION Income Statement For Year Ended December 31, 2011
Sales				$	2,013,800
Cost of goods sold					1,228,418
Gross profit					785,382
Operating expenses
Depreciation expense	$	56,100
Other expenses		514,707			570,807
Income before taxes					214,575
Income taxes expense					41,842
Net income				$	172,733

Additional Information on Year 2011 Transactions

a. Purchased equipment for $96,000 cash.
b. Issued 17,000 shares of common stock for $6.00 cash per share.
c. Declared and paid $92,000 in cash dividends.

Required:

Prepare a complete statement of cash flows using a spreadsheet; report operating activities under the indirect method.