The financial statements of Meenan Company appear below:

The financial statements of Meenan Company appear below:

MEENAN COMPANY

Comparative Balance Sheet

December 31

                                                                                                                 2010                2009    

Assets

Cash                                                                                                      $ 38,000           $ 23,000

Accounts receivable                                                                                   26,000               34,000

Merchandise inventory                                                                              30,000               15,000

Property, plant, and equipment                                                                   50,000               78,000

Accumulated depreciation                                                                        (20,000)            (24,000)

        Total                                                                                             $124,000           $126,000

Liabilities and Stockholders’ Equity

Accounts payable                                                                                  $ 17,000           $ 23,000

Income taxes payable                                                                                 13,000                 8,000

Bonds payable                                                                                             7,000               33,000

Common stock                                                                                          41,000               24,000

Retained earnings                                                                                     46,000              38,000

        Total                                                                                             $124,000           $126,000

MEENAN COMPANY

Income Statement

For the Year Ended December 31, 2010

Sales                                                                                                                                 $400,000

Cost of goods sold                                                                                                            280,000

Gross profit                                                                                                                        120,000

Operating expenses                                                                                                             46,000

Income from operations                                                                                                        74,000

Interest expense                                                                                                                     4,000

Income before income taxes                                                                                                 70,000

Income tax expense                                                                                                             21,000

Net income                                                                                                                       $ 49,000

The following additional data were provided:

1.  Dividends declared and paid were $41,000.

2.  During the year, equipment was sold for $15,000 cash. This equipment cost $28,000 originally and had a book value of $15,000 at the time of sale.

3.  All depreciation expense is in the operating expenses.

4.  All sales and purchases are on account.

5.  Accounts payable pertain to merchandise suppliers.

6.  All operating expenses except for depreciation were paid in cash.

Instructions

Prepare a statement of cash flows for Meenan Company using the indirect method

Meenan CompanyStatement of Cash Flows (Indirect Method)for the year ended Dec 31 2010Cash flows from operating activitiesNet incomeAdjustments to reconcile net income to net cash provide by…