Eldridge Company Balance Sheets 31-Dec Assets 2009 2008 Cash $29,568 $27,648 Acc
ID: 2377096 • Letter: E
Question
Eldridge Company
Balance Sheets
31-Dec
Assets 2009 2008
Cash $29,568 $27,648
Accounts Receivable $38,616 $35,280
Merchandise Inventory $87,750 $74,052
Long-term Investments $67,080 $67,680
Machinery $210,600 $174,600
Acculated Depreciation ($40,260) ($341,440)
Total assets $393,354 $341,820
Liabilities
Accounts Payable $78,000 $48,456
Income taxes payable $12,870 $12,240
Bonds Payable $58,500 $79,200
Total Liabilities $149,370 $139,896
Equity
Common Stock $140,400 $48,456
Contributed capital in excess of par $15,600 $12,240
Retained Earnings $87,984 $79,200
Total Equity $243,984 $201,924
Total Liabilities and Equity $393,354 $341,820
Eldridge Company
Income Statement
For year Ended December 31,2009
Sales $288,000
Cost of Goods Sold $97,080
Depreciation Expense $35,280
Other operating Expenses $57,600
Interest Expense $2,400 ($192,360)
Other Earnings
Los on sale of Equipment ($10,080)
Income before taxes $85,560
Income taxes Expense $33,180
Net Income $52,180Please 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.
Explanation / Answer
Cash flows from operating activities
Net income $52180
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation $35,280
Loss on sale of equipment 10,080
AR (3,336)
Inventory (13,698)
AP 29,544
Income taxes payable 630
Net cash provided by operating activities $110,680
Remainder to follow
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