Alternate Problem - Alternate problem B The following information relates to Dunwoody Nursery & Garden Center, Inc. The company leases a building adjacent to its land.
Dunwoody Nursery & Garden Center, Inc. Comparative Balance Sheets 2011 December 31 and 2010
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2011
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2010
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Assets
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Cash
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$44,500
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$ 52,000
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Accounts receivable, net
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59,000
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60,000
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Merchandise inventory
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175,000
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120,000
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Equipment
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412,500
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315,000
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Accumulated depreciation - equipment
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(120,000)
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(105,000)
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Land
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75,000
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15,000
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Total assets
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$646,000
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$457,000
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Liabilities and stockholders' equity
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Accounts payable
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$ 43,750
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$40,750
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Accrued liabilities payable
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2,250
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3,750
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Capital stock - common - $10 par
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375,000
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300,000
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Paid-in capital in excess of par
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150,000
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75,000
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Retained earnings
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75,000
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37,500
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Total liabilities and stockholders' equity
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$646,000
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$457,000
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Net income was $ 97,500 for the year.
Fully depreciated equipment costing $ 15,000 was sold for $ 3,750 (a gain of $ 3,750), and equipment costing $ 112,500 was purchased for cash.
Depreciation expense for the year was $ 30,000.
Land was purchased, $ 60,000.
An additional 7,500 shares of common stock were issued for cash at $ 20 per share (total proceeds, $ 150,000).
Cash dividends of $ 60,000 were declared and paid.
Prepare a statement of cash flows under the indirect method.