Reference no: EM131629787
Alternate Problem - Alternate problem B The following information relates to Dunwoody Nursery & Garden Center, Inc. The company leases a building adjacent to its land.
Dunwoody Nursery & Garden Center, Inc. Comparative Balance Sheets 2011 December 31 and 2010
|
|
2011
|
2010
|
|
Assets
|
|
|
|
Cash
|
$44,500
|
$ 52,000
|
|
Accounts receivable, net
|
59,000
|
60,000
|
|
Merchandise inventory
|
175,000
|
120,000
|
|
Equipment
|
412,500
|
315,000
|
|
Accumulated depreciation - equipment
|
(120,000)
|
(105,000)
|
|
Land
|
75,000
|
15,000
|
|
Total assets
|
$646,000
|
$457,000
|
|
Liabilities and stockholders' equity
|
|
|
|
Accounts payable
|
$ 43,750
|
$40,750
|
|
Accrued liabilities payable
|
2,250
|
3,750
|
|
Capital stock - common - $10 par
|
375,000
|
300,000
|
|
Paid-in capital in excess of par
|
150,000
|
75,000
|
|
Retained earnings
|
75,000
|
37,500
|
|
Total liabilities and stockholders' equity
|
$646,000
|
$457,000
|
Net income was $ 97,500 for the year.
Fully depreciated equipment costing $ 15,000 was sold for $ 3,750 (a gain of $ 3,750), and equipment costing $ 112,500 was purchased for cash.
Depreciation expense for the year was $ 30,000.
Land was purchased, $ 60,000.
An additional 7,500 shares of common stock were issued for cash at $ 20 per share (total proceeds, $ 150,000).
Cash dividends of $ 60,000 were declared and paid.
Prepare a statement of cash flows under the indirect method.