You are given a choice of taking the simple interest on 100,000 invested for 2 years

Condensed financial data of Arma Inc. follow.


ARMA 
INC.
Comparative Balance Sheets

December 31
Assets 


2011


2010
Cash $90,800 $48,400 
Accounts receivable 
92,800 33,000 
Inventories 112,500 102,850 
Prepaid expenses 28,400 26,000 

Investments 138,000 114,000 
Plant assets 270,000 242,500 
Accumulated 
depreciation 

(50,000)


(52,000)
Total 

$682,500 



$514,750 

Liabilities and Stockholders' Equity 
Accounts 
payable $112,000 $67,300
Accrued expenses payable 16,500 17,000
Bonds 
payable 110,000 150,000
Common stock 220,000 175,000
Retained earnings 


224,000


105,450
Total 


$682,500


$514,750


ARMA INC.
Income 
Statement

For the Year Ended December 31, 2011
Sales $392,780
Less: 

Cost of goods sold $135,460 
Operating expenses, excluding depreciation 
12,410 
Depreciation expense 46,500 
Income taxes 27,280 
Interest 
expense 4,730 
Loss on sale of plant assets 


7,500


233,880
Net income 


$158,900

Additional information:

New plant assets costing 
$85,000 were purchased for cash during the year.
Old plant assets having an 
original cost of $57,500 were sold for $1,500 cash.
Bonds matured and were 
paid off at face value for cash.
A cash dividend of $40,350 was declared and 
paid during the year.

Complete the statement of cash flows using the 
indirect method. (List amounts from largest positive to smallest positive 
followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If 
amount decreases cash flow, use either a negative sign preceding the number e.g. 
-45 or parentheses e.g. (45).)

AFTER PAYMENT ENTER PASSWORD : "SHIV" TO UNLOCK THE SOLUTION