Financial Accounting: P12-9A Condensed financial data of Cipra Inc

Financial Accounting P12-9A Condensed financial data of Cipra Inc. follow. CIPRA INC. Comparative Balance Sheets December 31, 2010 Assets 2010 2009 Cash 80,800 48,400 Accounts receivable 87,800 33,000 Inventories 112,500 102,850 Prepaid expenses 28,400 26,000 Investments 138,000 114,000 Plant assets 285,000 242,500 Accumulated depreciation (50,000) (52,000)Total $682,500 $514,750  Liabilities and Stockholders' Equity Accounts payable 102,000 67,300 Accrued expenses payable 16,500 17,000 Bonds payable 110,000 150,000 Common stock 220,000 175,000 Retained earnings 234,000 105,450 Total $682,500 $514,750  CIPRA INC. Income Statement Data For the Year Ended December 31, 2010 Sales 392,780 Less: Cost of goods sold 135,460 Gross Profit 257,320 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income taxes 27,280 Interest expense 4,730 Loss on sale of plant assets 7,500 98,420 Net Income $158,900  Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $30,350 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method.
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