E-13-8

                                                             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.