ANSWER KEY Here are comparative balance sheets for Taguchi Company

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Here are comparative balance sheets for Taguchi Company.

TAGUCHI COMPANY

Comparative Balance Sheets

December 31 Assets  2011   2010 

Cash              73,000              22,000

Accounts Receivable              85,000              76,000

Inventories             170,000             189,000

Land              75,000             100,000

Equipment             260,000             200,000

Accumulated Depreciation             (66,000)             (32,000)  

Total   $         597,000  $         555,000

Liabilities and stockholders' equity

Accounts Payable              39,000              47,000

Bonds Payable             150,000             200,000

Common stock ($1 par)             216,000             174,000

Retained earnings             192,000             134,000  

Total   $         597,000  $         555,000

Additional information:

1. Net income for 2011 was $103,000.

2. Cash dividends of $45,000 were declared and paid.

3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

4. Common stock was issued for $42,000 cash.

5. No equipment was sold during 2011, but land was sold at cost.

Instructions

Prepare a statement of cash flows for 2011 using the indirect method