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Long -Term Assets on the Statement of cash flows-Indirect Method The following account balances are...

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Accounting

Long -Term Assets on the Statement of cash flows-Indirect Method The following account balances are taken from the records of Martin Corp, for the past two years. (Credit balances are shown in parentheses.) December 31 ___________ 2010 2009 __________________________________________________________________________ Plant and Equipment $750.000 $500,000 Accumulated depreciation (160,000) (200,000) Patents 92,000 80,000 Retained earnings (825,000) (675,000) a. Net income for the year was $200,000. b. Depreciation expense on plant and equipment was $50,000. c. Plant and equipment with an original cost of $150,000 were sold for $64,000. (You will need to determine the book value of the assets sold.) d. Amortization expense on patents was $8,000. e. Both new plant and equipment and patents were purchased for cash during the year. I am having trouble indicating with amounts how all items related to these long-term assets would be reported in the 2010 statement of cash flows, including any adjustments in the Operating Activities section of the statement. Martin uses the indirect Method

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