Olbrot Corporation’s income statement for the year ended June 30, 2010 and its comparative balance sheets for June 30, 2010 and 2009 follow.

Olbrot Corporation

Income Statement

For the Year Ended June 30, 2010

Sales......................................................................$244,000

Cost of goods sold.................................................148,100

Gross margin.........................................................$ 95,900

Operating expenses.................................................45,000

Operating income.................................................$ 50,900

Interest expense........................................................2,800

Income before income taxes...............................$ 48,100

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

Net income.............................................................$ 35,800

Olbrot issued a $44,000 note payable for purchase of furniture; sold furniture that cost $54,000 with accumulated depreciation of $30,600 at carrying value; recorded depreciation on the furniture for the year, $38,600; repaid a note in the amount of $40,000; issued $50,000 of common stock at par value; and paid dividends of $8,600. Prepare Olbrot’s statement of cash flows for the year 2010 using the indirect method.

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Olbrot Corporatlon Comparative Balance Sheets June 30, 2010 and 2009 2010 2009 Assets $ 25,000 Cash $139,800 Accounts receivable (net) Inventory Prepaid expenses Furniture Accumulated depreciation, furniture 42,000 52,000 86,800 6,400 96,800 5,200 110,000 (18,000) $367,000 120,000 (10,000) $289,000 Total assets Llabilities and Stockholders' Equlty $ 26,000 2,400 74,000 230,000 34,600 $367,000 $ 28,000 Accounts payable Income taxes payable Notes payable (long-term) Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 3,600 70,000 180,000 7,400 $289,000