Question - Statement of cash flows-indirect method
The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2010 and 2009, is as follows:
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Assets
|
|
|
|
Cash
|
$92
|
$29
|
|
Accounts receivable (net)
|
53
|
36
|
|
Inventories
|
33
|
20
|
|
Land
|
76
|
83
|
|
Equipment
|
43
|
32
|
|
Accumulated depreciation-equipment
|
(11)
|
(6)
|
|
Total
|
$286
|
$194
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable (merchandise creditors)
|
$36
|
$29
|
|
Dividends payable
|
6
|
-
|
|
Common stock, $1 par
|
19
|
9
|
|
Paid-in capital in excess of par-common stock
|
50
|
23
|
|
Retained earnings
|
175
|
133
|
|
Total
|
$286
|
$194
|
The following additional information is taken from the records:
a. Land was sold for $18.
b. Equipment was acquired for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $61 credit to Retained Earnings for net income.
f. There was a $19 debit to Retained Earnings for cash dividends declared.
Required - Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use a minus sign to indicate cash outflows.