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    Cedar Company: Statement of Cash Flows

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    Statement of Cash Flows
    Cedar Company
    Comparative Balance Sheet
    December 31
    2008 2007
    Cash 64,000 36,000
    Accounts receivable, net 53,000 57,000
    Inventory 171,000 123,000
    Land 180,000 285,000
    Building 300,000 300,000
    Accumulated depreciation (75,000) (60,000)
    Equipment 1,545,000 900,000
    Accumulated depreciation:(177,000) (141,000)
    Total $2,061,000 $1,500000
    Account payable 172,000 150,000
    Bonds payable 480,000 -0-
    Capital stock, $10 par 1,125,000 1,125,000
    Retained earnings 284,000 225,000
    Total $2,061,000 $1,500,000

    Additional data:
    1) net income for the year amounted to $104,000.
    2) cash dividends were paid amounting to 4% of par value.
    3) land was sold for $120,000.
    4) Cedar sold equipment, which cost $225,000 and had accumulated depreciation of $90,000, for $105,000.
    Prepare a statement of cash flows using the indirect method.

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    The solution discusses the statement of cash flows for the Cedar Company.

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