Reference no: EM131804614
Question - Preparation of statement of cash flows (format provided)
The balance sheets for Tonka Corporation showed the following information. Additional information concerning transactions and events during 2010 are presented below.
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Tonka Corporation Balance Sheet
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31-Dec-10
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31-Dec-09
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Cash
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15,000
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10,000
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Current assets other than cash
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85,000
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58,000
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Long-term investments
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10,000
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53,000
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Plant assets
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335,000
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215,000
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$445,000
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$336,000
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Accumulated depreciation
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20,000
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40,000
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Current liabilities
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40,000
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22,000
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Bonds payable
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75,000
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-
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Capital stock
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254,000
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254,000
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Retained earnings
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56,000
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20,000
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$445,000
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$336,000
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Additional information:
1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2009, were sold in 2010 for $34,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2010 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
3. Net income as reported on the income statement for the year was $59,000.
4. Dividends paid amounted to $10,000.
5. Depreciation charged for the year was $28,000.
Instructions - Prepare a statement of cash flows for the year 2010 using the indirect method.