Required: Prepare a Cash Flow Statement in Good Form using the Indirect Method.

Balance Sheets

In Thousands 6/30/2012 6/30/2011

ASSETS:

Cash 70 80

AR 450 500

INV 400 350

PREPAIDS 70 70

PP&E 2,000 1855

ACC DEP (175) (150) Depr. of $25,000 is included in COGS

INVESTMENTS 90 120

Total Assets 2,905 2,825

LIABILITIES

AP 425 400

ACCRUED LIAB 20 25

NOTE PAYABLE 1,300 1,200

Total Liabilities 1,745 1,625

STOCKHOLDERS EQUITY

Common Stock 1,100 1000

Treasury Stock (400) (200)

Total PIC 700 800

RE 460 400 Declared and paid dividends

Total SE 1,160 1,200

Total Equities 2,905 2,825

Alpha Co. Income Statement

FYE 6/30/12 in thousands

Sales 1,300

Cogs (400)

GP 900

S, G&A 330

Net Operating Income 570

Gain on Sale of

Investments 10

Net Income Before Tax 580

Income Tax Expense 300

Net Income 280