Powell Corporation’s comparative balance sheets are presented below.
POWELL CORPORATION
Comparative Balance Sheets
December 31
POWELL CORPORATION
Comparative Balance Sheets
December 31
2010 2009
Cash $ 19,300 $ 10,700
Accounts receivable 18,200 23,400
Land 18,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Additional information:
1. Net income was $25,630. Dividends declared and paid were $22,500.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except
the change in accumulated depreciation. The land was sold for $5,900.
Instruction
Prepare a statement of cash flows for 2010 using the indirect method.