I need someone to put this in to a actuall statement of cash flows using the indirect method please. When it is written in paragraph form I do not grasp it.
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FARMER COMPANY Comparative Balance Sheets |
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December 31, |
December 31, |
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ASSETS |
2011 |
2010 |
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Cash |
$ 14,000 |
$ 9,000 |
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Accounts receivable |
52,000 |
24,000 |
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Inventory |
87,000 |
40,000 |
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Equipment |
125,000 |
100,000 |
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Accumulated depreciation |
(42,000) |
(34,000) |
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Prepaid expenses |
4,000 |
2,000 |
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Land |
0 |
7,000 |
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Building |
50,000 |
0 |
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Total Assets |
$290,000 |
$148,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Accounts payable |
$ 25,000 |
$ 14,000 |
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Interest payable |
8,000 |
6,000 |
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Taxes payable |
37,000 |
11,000 |
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Note payable |
37,000 |
32,000 |
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Bonds payable |
75,000 |
50,000 |
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Common stock, $10 par |
75,000 |
25,000 |
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Retained earnings |
33,000 |
10,000 |
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Total Liabilities and Stockholders’ Equity |
$290,000 |
$148,000 |
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Additional 2011 information: |
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Net income, $31,000 |
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Sold land for gain of $3,000 |
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Paid dividends of $8,000 |
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Issued $50,000 stock to purchase building |
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Required:
Using the indirect method, prepare a statement of cash flows for 2011 for Farmer Company using the form below.
Just make a statement of cash flows please, you do not need to use a specific form. I just cannot understand the answer that was in paragraph form.