Presented on the next page are the comparative balance sheets for Nunez Company at December 31.
|
NUNEZ COMPANY |
||
|
Assets |
2010 |
2009 |
|
Cash |
$ 41,000 |
$ 57,000 |
|
Accounts receivable |
77,000 |
64,000 |
|
Inventory |
192,000 |
140,000 |
|
Prepaid expenses |
12,140 |
16,540 |
|
Land |
100,000 |
150,000 |
|
Equipment |
205,000 |
175,000 |
|
Accumulated depreciation—equipment |
(70,000) |
(42,000) |
|
Building |
250,000 |
250,000 |
|
Accumulated depreciation—building |
(70,000) |
(50,000) |
|
Total |
$737,140 |
$760,540 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ 48,000 |
$ 45,000 |
|
Bonds payable |
235,000 |
265,000 |
|
Common stock, $1 par |
280,000 |
250,000 |
|
Retained earnings |
174,140 |
200,540 |
|
Total |
$737,140 |
$760,540 |
Additional information:
1. Operating expenses include depreciation expense $65,000 and charges from prepaid expenses of $4,400.
2. Land was sold for cash at cost.
3. Cash dividends of $59,290 were paid.
4. Net income for 2010 was $32,890.
5. Equipment was purchased for $70,000 cash. In addition, equipment costing $40,000 with a book value of $23,000 was sold for $25,000 cash.
6. Bonds were converted at face value by issuing 30,000 shares of $1 par value common stock.
Instructions
Prepare a statement of cash flows for 2010 using the indirect method.