24 Dec Following is an income statement for Caliope, Inc.
Following is an income statement for Caliope, Inc., for the year ended December 31, 2009, and the company’s balance sheets as of December 31, 2008 and 2009. The prepaid expenses and accrued liabilities included in Caliope’s balance sheets involve selling or general (operating) expenses. All of Caliope’s sales and merchandise purchases are made on a credit basis. Following is additional ﬁnancial information that was obtained from Caliope’s accounting records for 2009. Collections of accounts receivable $194,300 Purchases of merchandise 70,200 Prepayments of operating expenses . 34,600 Payments to suppliers . 74,000 Proceeds from sale of land . 5,200 Sale of 600 shares of $1 par value common stock for $8 per share . 4,800 Declaration and payment of cash dividends on common stock 15,000 Payments of 2009 income taxes . 26,000 Required: Prepare a statement of cash ﬂows for Caliope, Inc. for the year ended December 31, 2009, using the indirect method.