Problem - A comparative balance sheet for Bell Industries is given below:
Bell Industries Comparative Balance Sheet December 31, 2011 and 2010
Assets 2011 2010
Cash ........................................ $ 40,000 $ 10,000
Accounts receivable ......................... 100,000 92,000
Merchandise inventory ....................... 30,000 43,000
Land, buildings, and equipment .............. 325,000 200,000
Accumulated depreciation--buildings and
equipment ................................. (75,000) (50,000)
Total assets ............................ $420,000 $295,000
Liabilities and Stockholders' Equity
Accounts payable ............................ $ 65,000 $ 75,000
Common stock ($25 par) ...................... 275,000 200,000
Paid-in capital in excess of par ............ 50,000 0
Retained earnings ........................... 30,000 20,000
Total liabilities and stockholders' equity $420,000 $295,000
Additional data from the company's records were:
(a) On July 1, 2011, exchanged 3,000 shares of common stock for equipment.
(b) On December 31, 2011, paid cash dividends of $40,000 and income taxes of $10,000.
Prepare a cash flow statement for Bell Industries for the year ended December 31, 2011, using the indirect method. Include any necessary supplemental disclosures.