recitaiton 9 practice file for case flow 501015

Condensed financial data of Arma Inc. follow.


ARMA INC.
Comparative Balance Sheets
Dec-31
Assets	2011	2010
Cash	$90,800	$48,400
Accounts receivable	92,800	33,000
Inventories	112,500	102,850
Prepaid expenses	28,400	26,000
Investments	138,000	114,000
Plant assets	270,000	242,500
Accumulated depreciation	-50,000	-52,000
Total	$682,500	$514,750

Liabilities and Stockholders’ Equity
Accounts payable	$112,000	$67,300
Accrued expenses payable	16,500	17,000
Bonds payable	1,10,000	1,50,000
Common stock	2,20,000	1,75,000
Retained earnings	2,24,000	1,05,450
Total	$682,500	$514,750

ARMA INC.
Income Statement
For the Year Ended December 31, 2011
Sales		$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 sale of plant assets	7,500	2,33,880
Net income		$158,900

Additional information:

1. New plant assets costing $85,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of $40,350 was declared and paid during the year.

Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)