Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31, 2011 and 2010:

Required:
a. Complete the December 31, 2011 and 2010, balance sheets.
b. Prepare a statement of changes in retained earnings for the year ended December 31,2011.

Transcribed Image Text:

HARTFORD, INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash Flows from Operating Activities: Net income . S 9,000 .45,000 (7,000) ...(6,000) Add (deduct) items not affecting cash: Depreciation expense . . Increase in inventory... Decrease in accounts payable Net cash provided by operating activities.. $76,000 Cash Flows from Investing Activities: Purchase of buildings .. (48,000) $(98,000) Net cash used by investing activities...... Cash Flows from Financing Activities: 5,000 Cash used for retirement of long-term debt. $(25,000) Proceeds from issuance of common stock...._ . .10,000 Payment of cash dividends on common stock ...(3,000) Net cash used by financing activities. $(13,000) Net decrease in cash for the year......... $(35,000) HARTFORD, INC. Comparative Balance Sheets At December 31, 2011 and 2010 2011 2010 Assets Current assets: S 88,000 73,000 Cash. Total curent assets.... S 40,000 ...260,000 Less: Accumulated Total land, buildings, and equipment Liabilities Current liabilities: S 29,000 Accounts payable..S Short-tem debt... Notes payable 36,000 Total current liabilities. Owners' Equity Common stock Retained earnings.. 40,000 Total liabilities and owners' equity... $