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Statement of Cash Flows

Please follow the questions, and balance sheet and Income statement are attached.

Additional Information

1. There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.

2. Old machinery with an original cost of $45,060 was sold for $2,520 cash.

3. New machinery was purchased for $81,060 cash.

4. Cash dividends of $ 40,320 were paid.

5. Additional shares of stock were issued for cash

Prepare a complete statement of cash flows for calendar-year 2009 using the indirect method.

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Solution Summary

Given a balance sheet and an income statement, this solution illustrates how to complete a statement of cash flows using the indirect method.