Morgensen Software Corp. has assembled the following data for the years ending December 31, 2010 and 2009.

Requirement
1. Prepare Morgensen Software Corp.€™s statement of cash flows using the indirect method to report operating activities. Include an accompanying schedule of noncash investing and financingactivities.

Transcribed Image Text:

December 31 2010 2009 Current Accounts: Current assets: Accounts receivable Inventories Prepaid expe ts $120,400 $30,000 69,900 64,400 8,600 80,000 3,100 1,500 Current liabilities Accounts payable Income tax payable S 57,200 $55,800 18,600 16,700 15,500 27,200 Transaction Data for 2010: Acquisition of land by issuing Purchase of treasury long-term note payable Stock dividends3 $10,700 5,000 9,300 $201,000 Loss on sale of equipment Payment of cash dividends Collection of loan10,600 Issuance of long-term note Depreciation expense. payable to borrow cash 34,500 6,500 Purchase of building Reti rement of bonds payable Issuance of common stock by issuing common stock Purchase of long-term for cash Proceeds from sale of 64,000 36,500 81,000 5,000 investment 44,600 equipment Amortization ex