The Farmer Company\'s comparative balance sheets for 2010 and 2011, and addition
ID: 2370691 • Letter: T
Question
The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are presented below.
FARMER COMPANY
Comparative Balance Sheets
December 31,
December 31,
ASSETS
2011
2010
Cash
$ 14,000
$ 9,000
Accounts receivable
52,000
24,000
Inventory
87,000
40,000
Equipment
125,000
100,000
Accumulated depreciation
(42,000)
(34,000)
Prepaid expenses
4,000
2,000
Land
-0-
7,000
Building
50,000
-0-
Total Assets
$290,000
$148,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 25,000
$ 14,000
Interest payable
8,000
6,000
Taxes payable
37,000
11,000
Note payable
37,000
32,000
Bonds payable
75,000
50,000
Common stock, $10 par
75,000
25,000
Retained earnings
33,000
10,000
Total Liabilities and Stockholders' Equity
$290,000
$148,000
Additional 2011 information:
Net income, $31,000
Sold land for gain of $3,000
Paid dividends of $8,000
Issued $50,000 stock to purchase building
Required:
Using the indirect method, prepare a statement of cash flows for 2011 for Farmer Company using the form below. Include any necessary disclosures for noncash investing and financing transactions.
FARMER COMPANY
Comparative Balance Sheets
December 31,
December 31,
ASSETS
2011
2010
Cash
$ 14,000
$ 9,000
Accounts receivable
52,000
24,000
Inventory
87,000
40,000
Equipment
125,000
100,000
Accumulated depreciation
(42,000)
(34,000)
Prepaid expenses
4,000
2,000
Land
-0-
7,000
Building
50,000
-0-
Total Assets
$290,000
$148,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 25,000
$ 14,000
Interest payable
8,000
6,000
Taxes payable
37,000
11,000
Note payable
37,000
32,000
Bonds payable
75,000
50,000
Common stock, $10 par
75,000
25,000
Retained earnings
33,000
10,000
Total Liabilities and Stockholders' Equity
$290,000
$148,000
Additional 2011 information:
Net income, $31,000
Sold land for gain of $3,000
Paid dividends of $8,000
Issued $50,000 stock to purchase building
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