Exercise 11-43 (APPENDIX 11B) USING A SPREADSHEET TO PREPARE A STATEMENT OF CASH FLOWS
Comparative balance sheets for Cincinnati Health Club are presented below.
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Use a spreadsheet to prepare a statement of cashflows for Cincinnati Health Club.
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Cincinnati Health Club Balance SheetsDecember 31, 2009 and 2008 | ||||
ASSETS | 2009 | 2008 | ||
Current assets: CashAccounts receivable InventoryTotal current assets Property, plant, and equipment:Building Equipment Accumulated depreciation Net property, plant, andequipmentTotal assets | $ 5,300 | $ 9,200 | ||
10,500 | 8,900 | |||
19,800 | 18,600 | |||
$ 35,600 | $ 36,700 | |||
$ 490,000 | $ 490,000 | |||
280,000 | 270,000 | |||
$ 770,000 | $ 760,000 | |||
(148,000) | (120,000) | |||
622,000 | 640,000 | |||
$657,600 | $676,700 | |||
LIABILITIES AND EQUITY | ||||
Current liabilities: Accounts payable Salaries payable Income taxes payableTotal current liabilities Long-term liabilities:Bonds payable Total liabilitiesEquity:Common stock Retained earningsTotal equityTotal liabilities and equity | $ 55,300 | $ 36,100 | ||
9,500 | 11,700 | |||
1,100 | 9,900 | |||
$ 65,900 | $ 57,700 | |||
350,000 | 400,000 | |||
$415,900 | $457,700 | |||
$ 180,000 | $ 150,000 | |||
61,700 | 69,000 | |||
241,700 | 219,000 | |||
$657,600 | $676,700 |




Additional information:
a. Cincinnati Health Club reported net income of $2,700 for 2009.
b. No buildings nor equipment were sold during 2009. Equipment was purchased for
$10,000 cash.
c. Depreciation expense for 2009 was $28,000.
d. Bonds payable of $50,000 were issued for cash during 2009.
e. Common stock of $30,000 was issued during 2009.
f. Cash dividends of $10,000 were declared and paid during 2009.
Required:
Using a spreadsheet, prepare a statement of cash flows for 2009. Assume Cincinnati Health Club uses the indirect method.