Preparing a Statement of Cash Flows
LAH Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2011: cash collections from sales, $270,000; cash expended for operating expenses, $175,000; sale of unissued LAH stock for cash, $30,000; cash dividends declared and paid to stockholders during the year, $18,000; and payments on long-term notes payable, $80,000. During the year, a tract of land held as an investment was sold for $25,000 cash (which was the same price that LAH had paid for the land in 2010), and $48,000 cash was expended for two new machines. The machines were used in the factory. The beginning-of-the-year cash balance was $63,000.
Required:
Prepare the statement of cash flows for 2011. Follow the format illustrated in the chapter.