The balance sheets for Rainey Company showed the following information. Additional information concerning transactions and events during 2010 are presented below.
Rainey Company
Balance Sheet
December 31
2010 2009
Cash $ 30,900 $ 10,200
Accounts receivable (net) 43,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 236,500 150,000
Accumulated depreciation (37,700) (25,000)
$308,000 $212,500
Accounts payable $ 17,000 $ 26,500
Accrued liabilities 21,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 70,000 29,000
$308,000 $212,500
Additional data:
1 Net income for the year 2010, $76,000.
2 Depreciation on plant assets for the year, $12,700.
3 Sold the long-term investments for $28,000 (assume gain or loss is ordinary).
4 Paid dividends of $35,000.
5 Purchased machinery costing $26,500, paid cash.
6 Purchased machinery and gave a $60,000 long-term note payable.
7 Paid a $40,000 long-term note payable by issuing common stock.
Instructions
Prepare a statement of cash flows (using the indirect method) for 2010 for Rainey Company.
Click here for the solution: The balance sheets for Rainey Company showed the following information
