The comparative balance sheet of House Construction Co. for June 30, 2010 and 2009, is as follows

ACCOUNTING

The comparative balance sheet of House Construction Co. for June 30, 2010 and 2009, is as follows:

Assets June 30, 2010 June 30, 2009
Cash----- 41600 28200
A/R (Net) ----121900 110700
Inventories---------- 175600 170500
Investments---------- 0 60000
Land -------174000 0
Equipment---------- 258000 210600
Accumulated Depreciation--------- -58300 -49600
Total------------ 712800 530400


Liabilities & Stockholders Equity
A/P (Merchandise Creditors) ----------121000 114200
Accrued Expense Payable (Operating Expense)------------ 18000 15800
Dividends Payable--------------- 15000 12000
Common Stock, $1 Par--------------- 67200 60000
Paid-In Capital In Excess Of Par - Common Stock------- 264000 120000
Retained Earnings ------------227600 208400
Total---------- 712800 530400

The following additional information was taken from the records of House Construction Co.:

A. Equipment and land were acquired for cash.
B. There were no disposals of equipment during the year.
C. The investments were sold for $54,000 cash.
D. The common stock was issued for cash.
E. There was a $79,200 credit to Retained Earnings for net income.
F. There was a $60,000 debit to Retained Earnings for cash dividends declared.

A. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

B. Prepare ratios as required.

Check: Net Cash Flow from Operating Activities $86,600

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