Preparing a statement of cash flows. (Adapted from CPA examination.) Exhibit 15.11 presents a comparative statement of financial position for Biddle Corporation as of December 31, 2008 and 2009. Exhibit 15.12 presents an income statement for 2009. Additional information follows:

(1) On February 2, 2009, Biddle issued a 10% stock dividend to shareholders of record on January 15, 2009. The market price r share of the common stock on February 2, 2009, was $15.
(2) On March 1, 2009, Biddle issued 1,900 shares of common stock for land. The common stock and land had current fair values of approximately $20,000 on March 1, 2009.

(3) On April 15, 2009, Biddle repurchased long-term bonds with a face and carrying value of $25,000. It reported a gain of $6,000 on the income statement.
(4) On June 30, 2009, Biddle sold equipment costing $26,500, with a carrying value of $11,500, for $9,500 cash.
(5) On September 30, 2009, Biddle declared and paid a $0.04 per share cash dividend to shareholders of record on August 1, 2009.
(6) On October 10, 2009, Biddle purchased land for $42,500 cash.
(7) Deferred income taxes represent temporary differences relating to the use of different depreciation methods for income tax and financial statement reporting.
a. Prepare a T-account work sheet for the preparation of a statement of cash flows.
b. Prepare a formal statement of cash flows for Biddle Corporation for the year ended December 31, 2009. Use the indirectmethod.

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Biddle Corporation Statement of Financial Position (Problem 9) EXHIBIT 15.11 S608,000 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Accounts Payable. $130,000 $100,000 Accrued Liabilities 100,000 105,000 Total Current Liabilities $230,000 $205,000 Deferred Income Taxes 70,000 50,000 Long-Term Bonds (due December 15, 2020) 65,000 $365,000 90,000 $345,000 Total Liabilities Shareholders' Equity Common Stock, Par Value $5, Authorized 50,000 Shares, Issued and Outstanding 21,000 and 25,000 Shares, Respectively Additional Paid-In Capital .. Retained Earnings Total Shareholders Equity $105,000 $125,000 116,500 85,000 101,000 73,000 $342,500 S707,500 $263,000 Total Liabilities and Shareholders' Equity $608,000