Problem:
The following information is taken from French Corporation's financial statements:
Instructions:
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December 31
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2011
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2010
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Cash
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$90,000
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$ 27,000
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Accounts Receivable
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92,000
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80,000
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Allowance for Doubtful Accounts
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( 4,500)
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( 3,100)
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Inventory
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155,000
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175,000
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Prepaid Expenses
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7,500
|
6,800
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Land
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90,000
|
60,000
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Buildings
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287,000
|
244,000
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Accumulated Depreciation
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( 32,000)
|
(13,000)
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Patents
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20,000
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35,000
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Total Assets
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$705,000
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$611,700
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Accounts Payable
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$ 90,000
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$ 84,000
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Accrued Liabilities
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54,000
|
63,000
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Bonds Payable
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125,000
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60,000
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Common Stock
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100,000
|
100,000
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Retained Earnings - Appropriated
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80,000
|
100,000
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Retained Earnings - Unappropriated
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271,000
|
212,700
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Treasury Stock, at cost
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(15,000)
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( 8,000)
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|
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Total Liabilities and Equity
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$705,000
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$611,700
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For 2011 Year
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Net Income
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$58,300
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Depreciation Expense
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19,000
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Amortization of Patents
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5,000
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Cash dividends declared and paid
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20,000
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Gain or Loss on Sale of Patents
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none
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Prepare a statement of cash flows for French Corporation for the year 2011. (Use the indirect method.)