Volusia Company reported the following comparative balance sheets for 2009:

Additional information:
1. Net income for 2009 was $15,300.
2. Cash dividends of $10,500 were declared and paid during 2009.
3. Long-term investments with a cost of $18,000 were sold for cash at a loss of $1,500. Additional long-term investments were purchased for $29,700 cash.
4. Equipment with a cost of $20,000 and accumulated depreciation of $16,300 was sold for $4,500 cash. New equipment was purchased for $33,000 cash.
5. Depreciation expense was $24,800.
6. A principal payment of $8,000 was made on long-term notes. Volusia issued notes payable for $13,000 cash.
7. Common stock was sold for $7,900 cash.

Required:
Prepare a statement of cash flows for Volusia, using the indirect method to compute net cash flow from operatingactivities.

Transcribed Image Text:

Long-term investments Property, plant, and equipment Accumulated depreciation $187,700 Liabilities and Equity: Income taxes payable 9 Total liabilities and equity