cash flow statement using direct method

Exercise 12-1 Electrical supplies Balance Sheet 31 Dec 2011 31 Dec 2010 Change Assets Current assets Cash Account receivable Interest receivable Inventory Prepaid rent Note receivable Noncurrent assets Equipment Accumulated depreciation- equipment 23,000 330,000 7,000 212,000 8,000 160,000 32,000 330,000 4,000 218,000 7,200 160,000 -9,000 -20,000 3,000 -6,000 800 0 641,000 (200,000) 626,000 (145,000) 15,000 55,000 . 215,000 23,000 205,000 20,200 10,000 2.800 Liabilities Current liabilities Account payable Wage payable Noncurrent liabilities Long term note payable Equities Common stocks Retained earnings : 52,000 237,000 -185,000 400,000 491,000 .400,000 390,000 101,000 Income Statement - For the year ended December 31, 2011 Sales Interest revenue Gain on sale of equipment Total revenue Cost of goods sold Other expenses Wage expense Depreciation expense-equipment Rent expense Net income - 2,699,000 14,000 4,000 2,717,000 (1,710,000) (422,000) (315,000) (64,000) (48,000) 158,000 Additional information The company sold equipment that had a cost of $20,000 and accumulated depreciation of $9,000