Comparative statements of financial position for Eddie Murphy Company are presented below.

Additional information:
1. Net income for 2011 was $125,000.
2. Cash dividends of $60,000 were declared and paid.
3. Bond payable amounting to $50,000 were redeemed for cash $50,000.
4. Ordinary shares were issued for $50,000 cash.
5. Depreciation expense was $24,000.
6. Sales for the year were $978,000.

Instructions
Prepare a worksheet for a statement of cash flows for 2011 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference eachentry.

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EDDIE MURPHY COMPANY Comparative Statements of Financial Position December 31 2011 Assets Land Equipment Accumulated depreciation Inventories Accounts receivable Cash 75,000 260,000 (66,000) 180.000 85,000 63,000 S597,000 2010 $100,000 200,000 (42.000) 189.000 76,000 22,000 $545,000 Total Equity and Liabilities Share capital ordinary ($1 par) Retained earnings Bonds payable Accounts payable $214.000 199,000 150,000 34,000 S597,000 $164,000 134,000 200,000 47,000 $545,000 Total