Given the following information, prepare the complete statement of cash flows. Use the indirect method of preparing the operations sections.
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Simon corporation
Comparative balance sheets
Dec 31, 2010 and 2009
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2010
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2009
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Assets
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Cash
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$174,000
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$117,000
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Accounts receivable
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93,000
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81,000
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Merchandise inventory
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609,000
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534,000
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Equipment
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333,000
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297,000
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Accumulated depreciation: equipment
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(156,000)
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(102,000)
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Total assets
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$1,053,000
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$927,000
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Liabilities and equity
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Accounts payable
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$69,000
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$96,000
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Income taxes payable
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27,000
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24,000
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Common stock, $2 par value
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582,000
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558,000
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Paid-in capital in excess of par, common stock
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198,000
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162,000
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Retained earnings
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177,000
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87,000
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Total liabilities and equity
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$1,053,000
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$927,000
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Simon corporation
Income statement
For the year ended Dec 31, 2010
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Sales
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$1,992,000
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Cost of goods sold
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(1,194,000)
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Gross profit
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$798,000
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Operating expenses
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Depreciation expense
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$(54,000)
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Other expenses
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(501,000)
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(555,000)
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Income before taxes
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$243,000
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Income tax expense
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(42,000)
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Net income
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$201,000
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Additional information:
I. Purchased equipment for $36,000
II. Issued 12,000 shares of common stock for $5 cash per share
III.Declared and paid $111,000 in cash dividends