Intermediate Financial Accounting - Movers and Shakesrs (Indirect Method)

Intermediate Financial Accounting - Movers and Shakesrs (Indirect Method)

Intermediate Financial Accounting

Exercise 2
Condensed financial data of Movers and Shakers Inc. for 2009 and 2008 are presented below.
Movers and Shakers Inc.
Comparative Balance Sheet
As of December 31, 2009 and 2008
2009 2008
Cash 1,723 1,160
Receivables 1,735 1,275
Inventory 1,630 1,915
Plant assets 1,895 1,680
Accumulated depreciation (1,190) (1,150)
Long-term investments (Held-to-maturity) 1,375 1,455
$7,168 $6,335
Accounts payable 1,265 980
Accrued liabilities 205 230
Bonds payable 1,370 1,545
Capital stock 1,905 1,660
Retained earnings 2,423 1,920
$7,168 $6,335
Movers and Shakers Inc.
Income Statement
For the Year Ended December 31, 2009
Sales 6,800
Cost of goods sold 4,685
Gross margin 2,115
Selling and administrative expenses 920
Income from operation 1,195
Other revenues and gains
Gain on sale of investments 90
Income before tax 1,285
Income tax expense 514
Net income 771
Cash dividends 268
Income retained in business $503
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2009.

Instructions
Prepare a statement of cash flows, in proper format, using the indirect method.
Intermediate Financial Accounting - Movers and Shakesrs (Indirect Method)
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