prepare a statement of cash flows using the indirect method of presenting cash flows 461444

statement of Cash Flows – Indirect Method
The comparative balance sheets of Jorge, Inc at December 31, 201 I and 20 I0 are as follows:

Assets 12/31/11 12/31/10

Cash 476,880 292,960

A/R 113,920 104,480

Merchandise inventory 320,880 308,560

Investments 0 120,000

Equipment (at cost) 352,560 276,560

Accumulated total Deprec. (83,200) (74,000)

Total Assets $1,181,040 $1,028,560

Liabilities & Owners Equity

A/P (operations) 247,360 238,400

Common Stock $10 Par 64,000 48,000

Additonal paid in Capital 240,000 140,000

Retained Earnings 629,680 602,160

Total Liabilites & Owners 1,181,040 1,028,560

a. Net income during 2011 was $75,520
b. The equipment was acquired for cash and there were no disposals of equipment.
c. The inv stments were sold for $120,000.
d. 1,600 s ares of common stock were issued at $72.50 each
e. Cash div idends declared and paid, $48,000.

**Please preare a statement of cash flows using the indirect method of presenting cash
flows from operating activities.