GALLEY CORPORATION Comparative Balance Sheets December 31 2011 and 2010 2011

GALLEY CORPORATION
Comparative Balance Sheets
December 31 2011 and 2010
2011 2010
Assets
Cash $174000 $117000
Accounts receivable 93000 81000
Merchandise inventory 609000 534000
Equipment 333000 297000
Accum. depreciation equip (156000) (102000)
Total assets $1053000 927000
Liabilities and Equity
Accounts payable $69000 $96000
Income taxes payable 27000 24000
Common stock $2 par value 582000 558000
Paid in capital in excess of par value common stock 198000 162000
Retained earnings 177000 87000
Total liabilities and equity $1053000 $927000 GALLEY CORPORATION
Income Statement
For year Ended December 31 2011
Sales $1992000
Cost of goods sold 1194000
Gross Profit 798000
Operating Expenses
Depreciation Expense $54000
Other Expenses 501000 555000
Income before taxes 243000
Income tax expense 42000
Net income $201000
Additional Information on Year 2011 Transactions a. purchased equipment for $36000 cash
b. Issued 12000 shares of common stock for $5 cash per share
c. Declared and paid $111000 in cash dividends Required Prepare and complete statement of cash inflows and cash outflows from operating activities according to the indirect method.