Question - Sunnyvale Corporation prepared the following balance sheet data for 2011 and 2010:
Dec. 31, 2011 Dec. 31, 2010
Cash and cash equivalents $ 518,500 $ 675,000
Accounts Receivable 360,000 345,000
Merchandise Inventory 750,000 654,000
Prepaid insurance 4,500 6,000
Buildings and equipment 5,515,500 4,350,000
Accumulated depreciation-buildings and equipment (2,235,000) (1,995,000)
Total Assets $ 4,913,500 $ 4,035,000
Accounts Payable $ 613,500 945,000
Salaries Payable 75,000 105,000
Notes Payable-bank (current) 150,000 600,000
Notes Payable-bank (long-term) 1,500,000 0
Common Stock 2,400,000 2,400,000
Retained earnings (deficit) 175,000 (15,000)
Total liabilities and stockholders' equity $ 4,913,500 $ 4,035,000
Cash needed to purchase new equipment and to improve the company's working capital position was raised by borrowing from the bank with a long-term note. Equipment costing $75,000 with a book value of $15,000 was sold for $18,000; the gain on the sale was included in net income. The company paid cash dividends of $90,000 and reported earnings of $280,000 for 2011. There were no entries in the retained earnings account other than to record the dividends and net income for the year.
Prepare a statement of cash flows for 2011 using the indirect method (template attached).
Attachment:- Template.rar