Question: Question text The balance sheet for December 31, 2010, December 31, 2009, and the income statement for the year ended December 31, 2010, for XYZ
Question text
The balance sheet for December 31, 2010, December 31, 2009, and the income statement for the year ended December 31, 2010, for XYZ Company follows. " Prepare a cash flow statement using direct method
XYZ Company
Balance Sheet
December 31, 2010 and 2009
2010
2009
Assets
Cash
$ 25,000
$20,000
Accounts receivable, net
60,000
70,000
Inventory
80,000
100,000
Land
50,000
50,000
Building and equipment
130,000
115,000
Accumulated depreciation
(85,000)
(70,000)
Total assets
$ 260,000
$285,000
Liabilities and Stockholders' Equity
Accounts payable
$ 30,000
$ 35,000
Income taxes payable
4,000
3,000
Wages payable
5,000
3,000
Current notes payable
50,000
60,000
Common stock
110,000
100,000
Retained earnings
61,000
84,000
Total liabilities and stockholders' equity
$260,000
$285,000
XYZ Company
Income Statement
For the Year Ended December 31, 2010
Sales
$500,000
Less expenses:
Cost of goods sold
$330,000
Selling and administrative expenses including depreciation
90,000
Interest expense
5,000
Total expenses
425,000
Income before taxes
$ 75,000
Income tax expense
30,000
Net income
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