Eldridge Company

Balance Sheets

31-Dec

 

Assets 2009 2008

Cash $29,568 $27,648

Accounts Receivable $38,616 $35,280

Merchandise Inventory $87,750 $74,052

Long-term Investments $67,080 $67,680

Machinery $210,600 $174,600

Acculated Depreciation ($40,260) ($341,440)

Total assets $393,354 $341,820

 

Liabilities

Accounts Payable $78,000 $48,456

Income taxes payable $12,870 $12,240

Bonds Payable $58,500 $79,200

Total Liabilities $149,370 $139,896

 

Equity

Common Stock $140,400 $48,456

Contributed capital in excess of par $15,600 $12,240

Retained Earnings $87,984 $79,200

Total Equity $243,984 $201,924

Total Liabilities and Equity $393,354 $341,820

 

Eldridge Company

Income Statement

For year Ended December 31,2009

 

Sales $288,000

Cost of Goods Sold $97,080

Depreciation Expense $35,280

Other operating Expenses $57,600

Interest Expense $2,400 ($192,360)

Other Earnings

Los on sale of Equipment ($10,080)

Income before taxes $85,560

Income taxes Expense $33,180

Net Income $52,180Please follow the questions, and balance sheet and Income statement are attached.

 

Additional Information

 

1. There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.

 

2. Old machinery with an original cost of $45,060 was sold for $2,520 cash.

 

3. New machinery was purchased for $81,060 cash.

 

4. Cash dividends of $ 40,320 were paid.

 

5. Additional shares of stock were issued for cash

 

Prepare a complete statement of cash flows for calendar-year 2009 using the indirect method.