On the basis of the following data for Grant co. for 2010 and the preceding year ended December 31, 2009,

On the basis of the following data for Grant co. for 2010 and the preceding year ended December 31, 2009, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume the equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,00: that the stock was issued for cash: and that the only entries in the retained earnings account were net income of $56,000 and cash dividends declared of $18,000

2010 / 2009

Cash $90,000 / $78,000

Accounts Receivable $78,000 / $85,000

Inventories $106,500 / $90,000

Equipment $410,000 / $370,000

Accum. Depreciation $150,000 / -$158,000

TOTAL $534,500 / $465,000

Accounts Payable $53,500 / $55,000

Cash Dividends Payable $5,000 / $4,000

Common Stock, $10 par $200,000 / $170,000

Paid-in capital-excess par $62,000 / 60,000

Retained Earnings $214,000 / $176,000

TOTAL $534,000 / $465,000 SOLUTION