Spreadsheet for Statement of Cash Flows
For Year Ending December 31, 2010___ Analysis of Changes 31-Dec-09 Debit Credit 31-Dec-10
Balance sheet debit bal. accounts:
Cash 4000 10000 3500 10500
Accounts receivable 9000 1000 8000
Merchandise inventory 18000 3000 21000
Equipment 15000 3500 500 18000 Balance sheet=credit bal. accounts
Accum. Depreciation Equip 3000 1000 4000
Accounts payable 5000 2000 7000
Incomes taxes payable 2000 1000 1000
Common Stock, $ __10 par value 25000 2000 27000
Paid-in capital in excess of par value, common stock 5000 1000 6000
Retained earnings 6000 5000 11000 Statement of cash flows
Operating activities
_________ in accts. receivable 1000
_________ in merch. Inventory 3000
_________in accounts payable 2000
_________in incomes taxes payable 1000
Depreciation expense 1500 Investing activities
Payment for equipment 3500 Financing activities issued common stock for cash 3000 paid cash dividends 2500

INDIRECT METHOD Carpet Company Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2010 Cash flow from operating activities Net Income $ 9000 Adjustments to reconcile net income to net cash provided by operating activities Decrease in accounts receivable 1000 Increase in merchandise inventory (3000) Increase in accounts payable 2000 Decrease in income taxes payable (1000) Increase in depreciation expense 1500 Net cash provided by operating activities $9,500
Cash flow from investing activities Cash paid for equipment (3500) Net cash provided by investing activities (3500)
Cash flows from financing activities Cash received from issuing