REES CORPORATION
Comparative Balance Sheet
December 31
Assets 2011 2010
Cash $15,200 $17,700
Account Receivable $25,200 $22,300
Investments $20,000 $16,000
Equipment $60,000 $70,000
Accumulated Depreciation ($14,000) ($10,000)
Total $106,400 $116,000
Liabilities and Stockholders' Equity
Account Payable $14,600 $11,100
Bonds Payable $10,000 $30,000
Common Stock $50,000 $45,000
Retained Earnings $31,800 $29,900
Total $106,400 $116,000
Additional Information:
1.Net income was $18,300. Dividends declared and paid were $16,400
2.Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300
3.All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. (Hint: the accumulated depreciation between the two years is the depreciation for the period)
Prepare a statement of cash flows for 2011 using the indirect method.