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4. On the basis of the following data for Grant co. for 2010 and the preceding year ended December 31,2009, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume the equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,00: that the stock was issued for cash: and that the only entries in the retained earnings account were net income of $56,000 and cash dividends declared of $18,000 2010 / 2009 Cash$90,000 / $78,000 Accounts Receivable $78,000 / $85,000 Inventories $106,500 / $90,000 Equipment $410,000 / $370,000 Accum. Depreciation $150,000 / $158,000 TOTAL$534,500 / $465,000 Accounts Payable$53,500 / $55,000 Cash Dividends Payable $5,000 / $4,000 Common Stock, $10 par$200,000 / $170,000 Paid in capital excess par $62,000 / 60,000 Retained Earnings $214,000 / $176,000 TOTAL$534,000 / $465,000 |