E13-8 Here are comparative balance sheets for Taguchi Company. SCULLY CORPORATION Comparative Balance Sheets December 31 2011 2010 Cash $ 14,300 $ 10,700 Accounts receivable 21,200...

E13-8 Here are comparative balance sheets for Taguchi Company.

SCULLY CORPORATION

Comparative Balance Sheets

December 31

2011 2010

Cash $ 14,300 $ 10,700

Accounts receivable 21,200 23,400

Land 20,000 26,000

Building 70,000 70,000

Accumulated depreciation (15,000) (10,000)

Total $110,500 $120,100

Accounts payable $12,370 $31,100

Common stock 75,000 69,000

Retained earnings 23,130 20,000

Total $110,500 $120,100

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

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