Use the King Supply Corp. data from Problem.

Requirements
1. Prepare the 2010 statement of cash flows by using the direct method.
2. How will what you learned in this problem help you evaluate aninvestment?

King Supply Corp. Comparative Balance Sheets December 31, 2010 Increase 2009 (Decrease) Current assets: Cash and cash equivalens17,600 Accounts receivable Inventories.... Prepaid expenses 5,000 12,600 4,500 44,500 1,000 79,100 7,500 11,600 2,100 6000 (3,900) Plant assets: Land Equipment, net 69,100 21,900 47,200 49,200 53,100 Current liabilities: Accounts payable.. Salary payable... 35,800 25,600 S 10,200 22,000 5,600 6,400 22,900 24,20 (1,300) Long-term liabilities: Notes payable 50,000 37,000 13,000 Stockholders' equity: Common stock, no-par Retained earnings 88,600 64,300 24,300 47.200 27400 19.800 Total liabilities and stockholders' equity. $266,500 $194,100 $72.400 King Supply Corp. Income Statement Year Ended December 31, 2010 Revenues: Sales revenue. $445,000 Expenses: Cost of goods soldS185,100 Salary expense Depreciation expense.17,400 Other operating expense Interest expense Income tax expense 76,400 49,800 24,800 29,500 Total expenses 383,000 S 62,000