A comparative balance sheet and income statement for Eaton Company follow: Using

Question

A comparative balance sheet and income statement for Eaton Company follow:

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

2.

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Eaton Company Comparative Balance Sheet December 31, 2011 and 2010 2011 2010 Assets Cash Accounts receivable Inventory Prepaid expenses $ 30 $ 12 231 195 6 308 157 7 502 509 Total current assets Property, plant, and equipment 430 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets (84)(72) 358 32 $952 $ 834 425 25 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable $305 $ 225 79 63 71 74 367 172 450 Total current liabilities Bonds payable 199 649 161 Total liabilities 539 202 93 Common stock Retained earnings 142 Total stockholders' equity 303 295 Total liabilities and stockholders' equity $952$ 834

Explanation / Answer

Eaton Company Statement of cash flows For the year ended December 31, 2011 Operating Activities Net Income     64 Adjustments to Convert net income to cash basis Depreciation      22 Increase in accounts receiveble     -77 Decrease in inventory      38 Increase in prepaid expenses       -1 Increase in accounts payable      80 Decrease in accrued liabilities       -8 Decrease in Income taxes payable      11 Gain on sale of investments       -5 Loss on sale of equipments         2     62 Net cash provided by operating Activities 126 Investing Activities Proceeds from sales of long term investments      12 Proceeds from sale of Equipment      19 Additions to plant and equipment -110 Net cash used in Investing Activities -79 Financing Activities Issuance of bonds payable      27 Decrease in common stock     -41 Cash dividends     -15 Net cash used in Financing activities -29 Net increase in cash     18 Cash balance january 1, 2011     12 Cash Balance December 31, 2011     30

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