On the basis of the following data for the LWB Corporation for the current year and the preceding

On the basis of the following data for the LWB Corporation for the current year and the preceding year ended December 31, prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

 

December 31, 2009 December 31, 2008

Cash $75,700 $64,200

Accounts Receivable (net) 70,500 79,350

Inventories 99,500 87,500

Equipment 390,000 350,000

Accumulated Depreciation (150,000) (160,000)

TOTAL= 485,700 421,050

 

Accounts Payable – Trade 52,750 47,750

Cash Dividends Payable 10,000 12,500

Common Stock, $5 par 225,000 200,000

Premium on common stock 120,000 100,000

retained earnings 77,950 60,800

TOTAL= 485,700 421,050 

The following additional data was obtained from the accounting records:

 

1. Equipment costing $90,000 was purchased for cash

2. Equipment costing $50,000 with accumulated depreciation of $35,000 was sold for $10,000

3. common stock was issued for cash

4. there was a $47,150 credit to retained earnings for net income.

5. there was a $30,000 debit to retained earnings for cash dividends declared.