Financial Accounting: P12-10A Data for Cipra Inc. are presented in P12-9A

Financial Accounting  *P12-10A   Data for Cipra Inc. are presented in P12-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.  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 for Cipra Inc. using the direct method.  
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