Here are comparative balance sheets for Fateem Company. FATEEM COMPANY Comparative Balance Sheets December 31 Assets 2010 2009   Cash $ 73,000 $ 22,000 Accounts receivable 85,000 76,000 Inventories 170,000 189,000 Land 75,000 100,000 Equipment 260,000 200,000 Accumulated depreciation (66,000) (32,000) Total $597,000 $555,000   Liabilities and Stockholders’ Equity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  • Here are comparative balance sheets for Fateem Company.

FATEEM COMPANY

Comparative Balance Sheets

December 31

Assets

2010

2009

 

Cash

$ 73,000

$ 22,000

Accounts receivable

85,000

76,000

Inventories

170,000

189,000

Land

75,000

100,000

Equipment

260,000

200,000

Accumulated depreciation

(66,000)

(32,000)

Total

$597,000

$555,000

 

Liabilities and Stockholders’ Equity

 

Accounts payable

$ 39,000

$ 47,000

Bonds payable

150,000

200,000

Common stock ($1 par)

216,000

174,000

Retained earnings

192,000

134,000

Total

$597,000

$555,000

 

Additional information:

  1. Net income for 2010 was $103,000.
  2. Cash dividends of $45,000 were declared and paid.
  3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
  4. Common stock was issued for $42,000 cash.
  5. No equipment was sold during 2010, but land was sold at cost.

Instructions: Prepare a statement of cash flows for 2010.

 

 

 

 

 

 

 

 

 

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