Eldridge Company
Balance Sheets
31 Dec
Assets 2009 2008
Cash $29,568 $27,648
Accounts Receivable $38,616 $35,280
Merchandise Inventory $87,750 $74,052
Long term Investments $67,080 $67,680
Machinery $210,600 $174,600
Acculated Depreciation ($40,260) ($341,440)
Total assets $393,354 $341,820
Liabilities
Accounts Payable $78,000 $48,456
Income taxes payable $12,870 $12,240
Bonds Payable $58,500 $79,200
Total Liabilities $149,370 $139,896
Equity
Common Stock $140,400 $48,456
Contributed capital in excess of par $15,600 $12,240
Retained Earnings $87,984 $79,200
Total Equity $243,984 $201,924
Total Liabilities and Equity $393,354 $341,820
Eldridge Company
Income Statement
For year Ended December 31,2009
Sales $288,000
Cost of Goods Sold $97,080
Depreciation Expense $35,280
Other operating Expenses $57,600
Interest Expense $2,400 ($192,360)
Other Earnings
Los on sale of Equipment ($10,080)
Income before taxes $85,560
Income taxes Expense $33,180
Net Income $52,180Please follow the questions, and balance sheet and Income statement are attached.
Additional Information
1. There was no gain or loss on the sales of the long term investments, nor on the bonds retired.
2. Old machinery with an original cost of $45,060 was sold for $2,520 cash.
3. New machinery was purchased for $81,060 cash.
4. Cash dividends of $ 40,320 were paid.
5. Additional shares of stock were issued for cash
Prepare a complete statement of cash flows for calendar year 2009 using the indirect method.