To prepare the statement of cash flows, accountants for Daisy Electric Company have summarized 2010 activity in two accounts as follows:

Daisy€™s 2010 income statement and balance sheet data follow:

Daisy Electric Company
Selected Balance Sheet Data
December 31, 2010
Increase
(Decrease)
Current assets:
Cash and cash equivalents ................ $(12,200)
Accounts receivable.......................... 27,400
Inventories ........................................ 59,700
Prepaid expenses............................... 600
Long-term investments....................... (36,700)
Equipment, net................................... 12,000
Land.................................................. 80,800
Current liabilities:
Accounts payable.............................. (8,300)
Interest payable................................ 2,500
Salary payable.................................. (7,800)
Other accrued liabilities.................... (10,200)
Income tax payable........................... (2,500)
Long-term note payable.................... (61,500)
Common stock.................................. 161,800
Retained earnings............................. 80,000
Treasury stock................................... (22,400)

Requirements
1. Prepare the statement of cash flows of Daisy Electric Company for the year ended December 31, 2010, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.
2. Use Daisy s 2010 income statement and balance sheet to prepare a supplementary schedule of cash flows from operating activities by using the indirectmethod.

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Cash Beginning balance Sale of long-term investment 14,600 Payments of dividends Collections from customers Issuance of common stock Receipts of dividends 49,600 Payments on accounts payable 402,000 47,900 661,800 Payments of salaries and wages 143,600 26,600 31,000 Payments of operating expenses 34,500 Payment of long-term note payable 41,500 22,400 17,000 61,000 Payments of interest 16,900 Purchase of equipment Purchase of treasury stock Payment of income tax Ending Balance 37,400 Common Stock Beginning balance Issuance for cash Issuance to acquire land Issuance to retire note payable20,000 Ending balance 74,200 61,000 80,800 236,000 Daisy Electric Company Income Statement Year Ended December 31, 2010 Revenues: Sales revenue $689,200 16,900 706,100 Dividend revenue Total revenue. Cost of goods sold..$334,000 Salary and wage expense135,800 Depreciation expens19,000 Other operating expense 23,700 Income tax expense Loss on sale of investmens. 14,500 100 Total expenses and losses $127,900