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*E17-10 Comparative balance sheets for Eddie Murphy Company are presented below.

Price: $2.99


*E17-10 Comparative balance sheets for Eddie Murphy Company are presented below.

EDDIE MURPHY COMPANY
Comparative Balance Sheets
December 31
Assets 2010 2009
Cash $ 63,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 180,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (42,000)
Total $597,000 $545,000
Liabilities and Stockholders’ Equity
Accounts payable $ 34,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 199,000 134,000
Total $597,000 $545,000

Additional information:

1. Net income for 2010 was $125,000.

2. Cash dividends of $60,000 were declared and paid

3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

4. Common stock was issued for $50,000 cash.

5. Depreciation expense was $24,000.

6. Sales for the year were $978,000.

Instructions

Prepare a worksheet for a statement of cash flows for 2010 using the indirect method. Enter the
reconciling items directly on the worksheet, using letters to cross-reference each entry.

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