Arma

Comparative Balance Sheets
December 31
Assets 2010 2009
Cash $80,800 $ 48,400
Accounts receivable 87,800 33,000
Inventories 112,500 102,850
prepay expenses 28,400 26,000
Investments 138,000 114,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750
Liabilities and Stockholders Equity
Accounts payable $102,000 $ 67,300
accrue expenses payable 16,500 17,000
Bonds payable 110,000 150,000
Common stock 220,000 175,000
Retained compensation 234,000 105,450
Total $682,500 $514,750
Income affirmation Data
For the Year Ended December 31, 2010
gross revenue $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 cut-rate sale of implant assets 7,500 233,880
Net income $158,900
Additional information:
1. New plant assets wooing $100,000 were purchased for capital during the year.
2. Old plant assets having an original cost of $57,500 were sold for $1,500 coin.
3. Bonds matured and were paid off at caseful value for cash.
4. A cash dividend of $30,350 was declared and paid during the year.
launch a statement of cash flows using the direct method.



ARMA INC.




Statement of Cash Flows
For the Year Ended December 31, 2007


Cash flows from operating(a) activities
Cash receipts from customers$332,980(1)
Less cash payments:
To suppliers$100,410(2)
For operating expenses??15,310(3)
For income taxes??27,280
For delight???4,730?147,730
Net cash provided by operating
??activities?185,250

Cash flows from investing activities
sale of plant assets?? 1,500
Purchase of plant assets (85,000)
Purchase of investments? (24,000)
Net cash used by investing
??activities(107,500)

Cash flows from financing activities
Sale of common stock??45,000
Payment of cash dividends? (40,350)
Redemption of bonds? (40,000)
Net cash used by...If you want to get a full essay, coiffe it on our website: Orderessay



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