Ochoa Inc. had the following condensed balance sheet at the
Ochoa Inc. had the following condensed balance sheet at the end of operations for 2009. During 2010 the following occurred.
1. A tract of land was purchased for $11,000.
2. Bonds payable in the amount of $20,000 were retired at par.
3. An additional $10,000 in capital stock was issued at par.
4. Dividends totaling $9,375 were paid to stockholders.
5. Net income was $30,250 after deducting depreciation of $13,500.
6. Land was purchased through the issuance of $22,500 in bonds.
7. Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.
8. Both current assets (other than cash) and current liabilities remained at the same amount.
(a) Prepare a statement of cash flows for 2010 using the indirect method.
(b) Prepare the condensed balance sheet for Ochoa Inc. as it would appear at December 31,2010.