Bristol Corporation’s income statement for the year ended June 30, 2011, and its comparative balance sheets for June 30, 2011 and 2010 follow.

Bristol Corporation

Income Statement

For the Year Ended June 30, 2011

Sales ………………………………………       $234,000

Cost of goods sold ……………………….  156,000

Gross margin …………………………….    $ 78,000

Operating expenses ………………………  45,000

Operating income ………………………..  $ 33,000

Interest expense …………………………         2,800

Income before income taxes …………….$ 30,200

Income taxes expense …………………..    12,300

Net income ……………………………..          $ 17,900

Bristol issued a $22,000 note payable for purchase of furniture; sold furniture that cost $27,000 with accumulated depreciation of $15,300 at carrying value; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300. Prepare Bristol’s statement of cash flows for the year ended June 30, 2011, using the indirect method.

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Bristol Corporation Comparative Balance Sheets June 30, 2011 and 2010 2011 2010 Assets $ 69,900 21,000 43 400 12,500 Cash Accounts recelvable (net) Inventory Prepaid expenses Furniture Accumulated depreclation-fumiture Total assets 2,600 55,000 $183,500 $144,500 Liabilities and Stockholders Equity Accounts payable Income taxes payable Notes payable (long term) Common stock, $10 par value Retained earnings Total liablities and stockholders equity 13,000 1,200 37,000 115,000 14,000 1,800 35,000 90,000 3,700 $144,500 17 $183,500