Recitaiton 9_Practice file for Case Flow

Condensed financial data of Arma Inc. follow.ARMA INC.Comparative Balance SheetsDec-31Assets20112010Cash$90,800$48,400Accounts receivable92,80033,000Inventories112,500102,850Prepaid expenses28,40026,000Investments138,000114,000Plant assets270,000242,500Accumulated depreciation-50,000-52,000 Total$682,500$514,750Liabilities and Stockholders' EquityAccounts payable$112,000$67,300Accrued expenses payable16,50017,000Bonds payable1,10,0001,50,000Common stock2,20,0001,75,000Retained earnings2,24,0001,05,450 Total$682,500$514,750ARMA INC.Income StatementFor the Year Ended December 31, 2011Sales$392,780Less: Cost of goods sold$135,460 Operating expenses, excluding depreciation12,410 Depreciation expense46,500 Income taxes27,280 Interest expense4,730 Loss on sale of plant assets7,5002,33,880Net income$158,900 Additional information:1. New plant assets costing $85,000 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 $40,350 was declared and paid during the year. Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)


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