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.

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