Reference no: EM13555792

The comparative balance sheet of Portable Luggage Company at December 31, 2008 and 2007, is as follows:

	Dec. 31, 2008	Dec. 31, 2007
Assets
Cash	$ 175,900	$ 143,200
Accounts receivable (net)	264,100	235,000
Inventories	352,300	405,800
Prepaid expenses	12,500	10,000
Land	120,000	120,000
Buildings	680,000	450,000
Accumulated depreciation-buildings	(185,000)	(164,500)
Machinery and equipment	310,000	310,000
Accumulated depreciation-machinery & equipment	(85,000)	(76,000)
Patents	42,500	48,000
	$1,687,300	$1,481,500
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 332,300	$ 367,900
Dividends payable	13,000	10,000
Salaries payable	30,200	34,600
Mortgage note payable, due 2015	90,000	-
Bonds payable	-	154,000
Common stock, $1 par	24,000	20,000
Paid-in capital in excess of par-common stock	200,000	50,000
Retained earnings	997,800	845,000
	$1,687,300	$1,481,500

An examination of the income statement and the accounting records revealed the following additional information applicable to 2008:

a. Net income, $204,800.

b. Depreciation expense reported on the income statement: buildings, $20,500; machinery and equipment, $9,000.

c. Patent amortization reported on the income statement, $5,500.

d. A building was constructed for $230,000.

e. A mortgage note for $90,000 was issued for cash.

f. 4,000 shares of common stock were issued at $38.50 in exchange for the bonds payable.

g. Cash dividends declared, $52,000.

Instructions

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.