Reference no: EM131816624

Question - Statement of cash flows-indirect method

The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2010 and 2009, is as follows:

		Dec. 31, 2010	Dec. 31, 2009
Assets
Cash		$92	$29
Accounts receivable (net)		53	36
Inventories		33	20
Land		76	83
Equipment		43	32
Accumulated depreciation-equipment		(11)	(6)
	Total	$286	$194
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$36	$29
Dividends payable		6	-
Common stock, $1 par		19	9
Paid-in capital in excess of par-common stock		50	23
Retained earnings		175	133
Total		$286	$194

The following additional information is taken from the records:

a. Land was sold for $18.

b. Equipment was acquired for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. There was a $61 credit to Retained Earnings for net income.

f. There was a $19 debit to Retained Earnings for cash dividends declared.

Required - Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use a minus sign to indicate cash outflows.