Additional share of stock were issued for cash prepare a

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Reference no: EM13573475

Balance Sheets at December 31

Assets	2010	2009
Cash	$24,640	$23,040
Accounts Receivable	$32,180	$29,400
Merchandise inventory	$73,125	$61,710
Long Term investments	$55,900	$56,400
Equipment	$175,500	$145,500
Accumulated Depreciation	$(33,550)	$(31,200)
Total Assets	$327,795	$284,850

Liabilities
Accounts Payable	$65,000	$40,380
Income taxes payable	$10,725	$10,200
Bonds Payable	$48,750	$66,000
Total liabilities	$124,475	$116,580

Equity
common stock	$117,000	$96,000
Contributed capital in excess of par	$13,000	$9,000
Retained earnings	$73,320	$63,270
Total equity	$203,320	$168,270
Total liabilities and equity	$327,795	$284,850

Income Statement for Year Ended December 31,2010

Sales		$240,000
Cost of Goods Sold	$80,900
Depreciation Expense	$29,400
Other Operating Expenses	$48,000
Interest Expense	2,000	($160,300)
Other Gains (losses)
Loss on sale of equipment		($8,400)
Income before taxes		$71,300
Income taxes expense		$27,650
Net Income		$43,650

Additional Information:

1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.

2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.

3) New equipment was purchased for $67,550 cash.

4) Cash dividends of $33,600 were paid.

5) Additional share of stock were issued for cash.

Prepare a complete statement of cash flows for the 2010 calendar year using the indirect method.

Reference no: EM13573475

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