4. Saferoad Corporation has completed it comparative balance sheet and income statement at year-end 2009.
‘ A payment of $7,500 was made on the loan principal during the year
‘ Just before year-end, a dividend was distributed to stockholders.
‘ A parcel of land was acquired early in the year.
‘ New shares of common stock were sold during the year.
Year 2009 Year 2008
Cash 1,090 4,000
Accounts receivable 2,910 6,150
Inventory 4,800 3,880
Prepaid advertising 700 1,775
Building and furnishings 40,000 40,000
Accumulated depreciation -10,000 -8,000
Land 27,000 15,000
TOTAL ASSETS 66,500 62,805
Rent payable 2,000 4,000
Taxes payable 1,900 1,500
Wages payable 3,300 2,200
Loan payable, long-term 19,600 26,805
Common stocks 31,000 25,000
Retained earnings 8,700 3,300
TOTAL LIABILITIES AND EQUITY 66,500 62,805
Income Statement for 2009
Sales Revenue 350,000
Cost of goods solD 250,600
Gross profit 99,400
Operating expenses:
Advertising 9,500
Depreciation 2,000
Insurance 4,100
Rent payable 28,900
Wages 40,450
Operating income 14,450
Interest expense 1,600
Income before tax 12,850
Taxes 3,850
Net income 9,000
Prepare a statement of cash flows using the indirect method format, please left align all headings