The comparative balance sheet of Alliance Structures Inc. for December 31, 2008 and 2007, is as follows:
|
Cash |
$ 90 |
$ 23 |
|
Accounts receivable (net) |
30 |
27 |
|
Inventories |
24 |
21 |
|
Land |
35 |
55 |
|
Equipment |
32 |
22 |
|
Accumulated depreciation—equipment |
(9) |
(5) |
|
|
$202 |
$143 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Accounts payable (merchandise creditors) |
$ 17 |
$ 10 |
|
Dividends payable |
1 |
— |
|
Common stock, $1 par |
6 |
3 |
|
Paid in capital in excess of par—common stock |
30 |
10 |
|
Retained earnings |
148 |
120 |
|
Total |
$202 |
$143 |
The following additional information is taken from the records:
a. Land was sold for $15.
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 $40 credit to Retained Earnings for net income.
f. There was a $12 debit to Retained Earnings for cash dividends declared.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.