Reference no: EM13348772

Question:

The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are given below.

FARMER COMPANY

Comparative Balance Sheets

                                                                             December 31,                             December 31,

ASSETS                                                                      2011                                             2010

Cash                                                                          $ 14,000                                      $ 9,000

Accounts receivable                                                52,000                                         24,000

Inventory                                                                    87,000                                        40,000

Equipment                                                                  125,000                                      100,000

Accumulated depreciation                                       (42,000)                                     (34,000)

Prepaid expenses                                                       4,000                                          2,000

Land                                                                                -0-                                             7,000

Building                                                                       50,000                                              -0-

Total Assets                                                             $290,000                                        $148,000

LIABILITIES AND STOCKHOLDERS' EQUITY             

Accounts payable            $ 25,000           $ 14,000

Interest payable               8,000                    6,000

Taxes payable                  37,000                 11,000

Note payable                    37,000                 32,000

Bonds payable                 75,000                 50,000

Common stock, $10 par 75,000                 25,000

Retained earnings           33,000                 10,000

Total Liabilities and Stockholders' Equity                $290,000        $148,000

Additional 2011 information:      

Net income, $31,000      

Sold land for gain of $3,000         

Paid dividends of $8,000              

Issued $50,000 stock to purchase building            

Required:

Using the indirect method, organize a statement of cash flows for 2011 for Farmer Company using the form below. Include any essential disclosures for noncash investing and financing transactions.