Year Year
2011 2010
Cash $72,000 $42,500
Accounts receivable(net) 61,000 70,200
Inventories 121,000 105,000
Investments .... 100,000
Equipment 515,000 425,000
Accumulated depreciation-equipment (153,000) (175,000)
$616,000 $567,700
Accounts payable $59,750 $47,250
Bonds payable, due 2011 ... 75,000
Common stock, $20 par 375,000 325,000
Premium on common stock 50,000 25,000
Retained earnings 131,250 95,450
$616,000 $567,700
Additional data for the current year are as follows:
(a) Net income, $75,800
(b) Depreciation reported on income statement, $38,000
(c) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.
(d) Bonds payable for $75,000 were retired by payment at their face amount.
(e) 2,500 shares of common stock were issued at $30 for cash.
(f) Cash dividends declared and paid, $40,000
(g)Investments of $100,000 were sold for $125,000
Prepare a statement of cash flows using the indirect method