Additional information:
1. Income Statement Data for Year Ended December 31, 2010
2. Cash dividends of $320,000 were declared December 16, 2010, payable January 20, 2011. A 5% stock dividend was issued March 31, 2010, when the market value was $55.00 per share.
3. The long-term investments were sold for $350,000.
4. A building and land which cost $1,200,000 and had a book value of $750,000 were sold for $1.000,000. The cost of the land, included in the cost and book value above, was $50,000.
5. The following entry was made to record an exchange of an old machine for a new one:
6. A fully depreciated copier machine which cost $70,000 was written off.
7. Preferred stock of $150,000 stated value was redeemed for $200,000.
8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2010 for $62.50 a share. There were 87,600 shares outstanding on December 31, 2010.
9. Bonds were sold at 104 on December 31, 2010.
10. Land that was condemned had a book value of $600,000.
Instructions
Prepare a statement of cash flows (indirect method). Ignore tax effects.
Solution
