USA: +1(669)289-8683 
Sign in
Condensed financial data of Arma Inc. follow.
| ARMA INC. | ||
| Comparative Balance Sheets | ||
|
December 31 |
||
| Assets |
2011 |
2010 |
| Cash | $90,800 | $48,400 |
| Accounts receivable | 92,800 | 33,000 |
| Inventories | 112,500 | 102,850 |
| Prepaid expenses | 28,400 | 26,000 |
| Investments | 138,000 | 114,000 |
| Plant assets | 270,000 | 242,500 |
| Accumulated depreciation |
(50,000) |
(52,000) |
|
$682,500 |
$514,750 |
|
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $112,000 | $67,300 |
| Accrued expenses payable | 16,500 | 17,000 |
| Bonds payable | 110,000 | 150,000 |
| Common stock | 220,000 | 175,000 |
| Retained earnings |
224,000 |
105,450 |
| Total |
| Income Statement | ||
|
For the Year Ended December 31, 2011 |
||
| Sales | $392,780 | |
| Less: | ||
| Cost of goods sold | $135,460 | |
| Operating expenses, excluding depreciation | 12,410 | |
| Depreciation expense | 46,500 | |
| Income taxes | 27,280 | |
| Interest expense | 4,730 | |
| Loss on sale of plant assets |
7,500 |
233,880 |
| Net income |
$158,900 |
Additional information:
- New plant assets costing $85,000 were purchased for cash during the year.
- Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
- Bonds matured and were paid off at face value for cash.
- A cash dividend of $40,350 was declared and paid during the year.
Complete the statement of cash flows using the indirect method and direct method
