The following balances are available for Chrisman Company:

Bonds were retired during 2010 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $35,000. Net income was reported at $26,000.

Required
1. Prepare a statement of cash flows for 2010 using the indirect method in the Operating Activities section.
2. Did Chrisman generate sufficient cash from operations to pay for its investing activities? How did it generate cash other than from operations? Explain youranswers.

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December 31 2010 2009 Cash Accounts receivable Inventory Prepaid rent Land Plant and equipment Accumulated depreciation S 8,000 20,000 15,000 9,000 75,000 400,000 (65,000) S 462,000 S 12,000 3,000 35,000 75,000 200,000 137000 $462.000 10,000 15,000 25,000 6,000 75,000 300,000 130,000 $401,000 $ 10,000 5,000 25,000 100,000 150,000 111,000 1,000 Totals Accounts payable Income taxes payable Short-term notes payable Bonds payable Common stock Retained earnings Totals