December 31 2011 2010 (15,170) (10,160) $111,210 $119,830 24,100 19,770 $111,210

Question

December 31

2011

2010

(15,170)

(10,160)

$111,210

$119,830

24,100

19,770

$111,210

$119,830

Additional information:

Net income was $22,880. Dividends declared and paid were $18,550.

All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,700.

For the Year Ended December 31, 2011

$

$

Some Titles are missing from statement of cash flows that need to be included as well. Thanks

Willingham Corporation's comparative balance sheets are presented below. WILLINGHAM CORPORATION Comparative Balance Sheets

December 31

2011

2010

Cash $14,280 $10,410 Accounts receivable 21,090 23,380 Land 20,890 26,080 Building 70,120 70,120 Accumulated depreciation

(15,170)

(10,160)

     Total

$111,210

$119,830

Accounts payable $12,230 $31,110 Common stock 74,880 68,950 Retained earnings

24,100

19,770

     Total

$111,210

$119,830

Additional information:

1. Net income was $22,880. Dividends declared and paid were $18,550.

2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,700.

Explanation / Answer

The only thing missing is the treatment of the Loss on sale of Land of 340. (Basis 5,240 less proceeds of 4,900). That must be added back to Operating Activities, since it belongs under Investing. That gives you total cash flow from Operations of 12,200.

Cash flow from sale of Land under Investing is 4,900

Cash flow under Financing is negative (13,190).

Net Cash Flow for Year = 12,200 + 4,900 - 13,190 = 3,910

Net increase in Cash for year = 3,910.

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