=+PR 16-2A Statement of cash flows—indirect method obj. 2

✔ Net cash flow from operating activities, $169,600 The comparative balance sheet of Putnam Cycle Co. at December 31, 2010 and 2009, is as follows:

Dec. 31, 2010 Dec. 31, 2009 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 510,000 $ 536,000 Accounts receivable (net). . . . . . . . . . . . . . . . . . . . 460,500 423,300 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,700 646,100 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . 16,300 19,500 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,500 266,500 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812,500 500,500 Accumulated depreciation—buildings . . . . . . . . . . . (227,000) (212,400)

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284,600 252,600 Accumulated depreciation—equipment . . . . . . . . . . (78,500) (88,200) ___________ __________