complete balance sheet and prepare a statement of changes in retained earnings follo 638421

HARTFORD, INC.

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash Flows from Operating Activities:

Net income $

9,000

Add (deduct) items not affecting cash:

Depreciation expense

45,000

Decrease in accounts receivable

23,000

Increase in inventory

(7,000)

Increase in notes payable

12,000

Decrease in accounts payable

(6,000)

Net cash provided by operating activities.

$ 76,000

Cash Flows from Investing Activities:

Purchase of equipment.

$(50,000)

Purchase of buildings

(48,000)

Net cash used by investing activities

$(98,000)

Cash Flows from Financing Activities:

Proceeds from short term debt.

5,000

Cash used for retirement of long term debt

$(25,000)

Proceeds from issuance of common stock

10,000

Payment of cash dividends on common stock

(3,000)

Net cash used by financing activities

$(13,000)

Net decrease in cash for the year

$(35,000)

HARTFORD, INC.

Comparative Balance Sheets

At December 31, 2011 and 2010

2011

2010

Assets

Current assets:

Cash.

$

$ 88,000

Accounts receivable

73,000

Inventory.

56,000

Total current assets

$

$

Land

$

$ 40,000

Buildings and equipment

260,000

Less: Accumulated depreciation

$

(123,000)

Total land, buildings, and equipment.

$

$

Total assets

$

Liabilities

Current liabilities:

Accounts payable.

$

$ 29,000

Short term debt

32,000

Notes payable

$

36,000

Total current liabilities

$ 85,000

$

Long term debt

$

Owners’ Equity

Common stock

$ 40,000

$

Retained earnings

Total owners’ equity

$

$

Total liabilities and owners’ equity

$

$