Davis Corp s comparative balance sheet and income statement for the last year appear below: |
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Balance Sheet |
For the Year Ended December 31 |
|
2009 2008 |
Assets Cash 57,000 23,000 |
Accounts receivable 90,000 69,000 |
Inventory 30,000 49,000 |
Prepaid expenses 9,000 15,000 |
Long-term investments 270,000 190,000 |
Plant and equipment 450,000 450,000 |
Less accumulated depreciation 273,000 231,000 |
Total assets 633,000 565,000 |
|
Liabilities Accounts Payable 22,000 45,000 |
Accrued liabilities 31,000 24,000 |
Taxes payable 18,000 25,000 |
Bonds payable 60,000 100,000 |
Deferred taxes 39,000 24,000 |
Owners Equity Common stock 140,000 110,000 |
Retained earnings 323,000 237,000 |
Total liabilities and owners equity 633,000 565,000 |
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Income Statement |
For the year 2009 |
|
Sales 850,000 |
Cost of goods sold 410,000 |
Gross margin 440,000 |
Selling & admin expenses 280,000 |
Net operating income 160,000 |
Income taxes 48,000 |
Net income 112,000 |
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Davis declared and paid a cash dividend of $26,000 during 2009, and has another cash dividend planned for 2010 in the amount of $40,000. Davis has also planned to spend $150,000 in new capital equipment in 2010. |
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Required: |
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Prepare a statement of cash flows for Davis Corp. for the year ended December 31, 2009. Use the indirect method. |