Problem:
Taguchi Company
Comparative Balance
December 31
Assets 2007 2006
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders' Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2008 was 103,000.
2. Cash dividends of 45,000 were declared and paid.
3. Bonds payable amounting to 50,000 were redeemed for cash 50,000.
4. Common stock was issued for 42,000 cash.
5. No equipment was sold during 2008.
Instructions
Prepare a statement of cash flows for 2008 using the indirect method.