A comparative balance sheet for Lyon Company appears below
LYON COMPANY
Comparative Balance Sheet
Dec. 31, 2008 Dec, 31, 2007
Assets
Cash $23,000 $10,000
Accounts receivable 18,000 14,000
Inventory 27,000 18,000
Prepaid expenses 6,000 9,000
Long-term investments -0- 18,000
Equipment 60,000 32,000
Accumulated depreciation-equipment (18,000) (14,000)
Total assets $116,000 $87,000
Liabilities and Stockholders’ Equity
Accounts payable $17,000 $7,000
Bonds payable 37,000 47,000
Common stock 40,000 23,000
Retained earnings 22,000 10,000
Total liabilities and stockholders’ equity $116,000 $87,000
Additional information
1. Net income for the year ending December 31, 2008 was $24,000.
2. Cash dividends of $21,000 were declared and paid during the year.
3. Long-term investments that had a cost of $18,000 were sold for $16,000.
4. Sales for 2008 were $120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2008, using the indirect method.
