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THE ROBINSON COMPANY COMPARATIVE BALANCE SHEETS DECEMBER 31 ASSETS Cash Accounts receivable Inventory Prepaid Insurance Land Building Accumulated depreciation Total Assets 2010 $130,000 69,000 80,000 6,000 120,000 500,000 (105,000) $800,000 2009 $ 40,000 60,000 100,000 4,000 200,000 400,000 (100,000) $704,000 Increase (Decrease) $90,000 9,000 (20,000) 2,000 (80,000) 100,000 (5,000) $96,000 LIABILITIES & OWNERS' EQUITY $ (5,000) 2,600 (10,000) 20,000 50,000 10,000 28,400 $96,000 Accounts payable $ 20,000 $ 25,000 Income Tax Payable 22,600 20,000 Notes payable, long-term 40,000 50,000 Bonds payable 120,000 100,000 Common stock 450,000 400,000 Paid-in capital 60,000 50,000 Retained earnings 87,400 59,000 Total Liabilities & Owners' Equity $800,000 $704,000 THE ROBINSON COMPANY INCOME STATEMENT For the Year Ended December 31, 2010 Sales Revenue $200,000 Expenses Cost of goods sold $ 80,000 Salary expense 39,000 Depreciation expense 5,000 Interest expense 3,000 Insurance expense 1,000 Loss on sale of land 10,000 Income tax expense 18,600 Total expenses 156,600 Net income $ 43,400 Other information: 1. Land which originally cost $100,000 was sold for $90,000. 2. Building was purchased for cash. 3. Bonds were issued at par value in exchange for land. 4. Common stock with a par value of $50,000 was issued for $60,000. 5. Dividends of $15,000 were declared and paid during the year. Instructions: Prepare the statement of cash flows of the Robinson Company for the year 2010. Prepare cash flow from operating activities by both direct and indirect method

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