The comparative balance sheets for Gould Company as of December 31 are presented below.
| GOULD COMPANY |
| Comparative Balance Sheets |
|
December 31
|
| Assets |
2011
|
|
2010
|
| Cash |
$ 71,290 |
|
|
$ 44,830 |
|
| Accounts receivable |
44,040 |
|
|
62,020 |
|
| Inventory |
151,350 |
|
|
141,860 |
|
| Prepaid expenses |
14,990 |
|
|
21,460 |
|
| Land |
104,900 |
|
|
130,260 |
|
| Equipment |
228,190 |
|
|
154,960 |
|
| Acc. depr. - equipment |
(44,620) |
|
|
(35,020) |
|
| Building |
199,840 |
|
|
199,840 |
|
| Acc. depr. - building |
(60,390)
|
|
|
(39,940)
|
|
| Total |
$709,590
|
|
|
$680,270
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
| Accounts payable |
$ 48,140 |
|
|
$ 39,560 |
|
| Bonds payable |
259,810 |
|
|
299,710 |
|
| Common stock, $1 par |
199,800 |
|
|
159,900 |
|
| Retained earnings |
201,840
|
|
|
181,100
|
|
| Total |
$709,590
|
|
|
$680,270
|
|
Additional information:
-
Operating expenses include depreciation expense of $41,790 and charges from prepaid expenses of $6,470.
-
Land was sold for cash at book value.
-
Cash dividends of $16,160 were paid.
-
Net income for 2011 was $36,900.
-
Equipment was purchased for $94,560 cash. In addition, equipment costing $21,330 with a book value of $9,590 was sold for $6,230 cash.
-
Bonds were converted at face value by issuing 39,900 shares of $1 par value common stock.
Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.