Here are comparative balance sheets for Taguchi Company.

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Here are comparative balance sheets for Taguchi Company.

 

                                 TAGUCHI COMPANY

                          Comparative Balance Sheets 

                                     December 31

 

Assets                                   2011                         2010

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 2011 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 2011, but land was sold at cost.

 

 

Required:

 

Prepare a statement of cash flows for 2011 using the indirect method

 

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