Compute cash flow from operating activities using the indirect method. Blue Co. Balance Sheet December 31, 2009 and 2008
2009 2008
Cash $220 $110
Accounts receivable 45 60
Inventory 110 90
Total current assets $375 $260
Property, plant & equipment 140 140
Less: Accumulated depreciation 40 25
Property, plant & equipment, net $100 $115
Total assets $475 $375
Accounts payable $ 40 $ 30
Accrued expenses 10 15
Total current liabilities $ 50 $ 45
Stockholders' equity:
Common stock 200 200
Retained earnings 225 130
Total liabilities and stockholders' equity $475 $375
Blue Co. Income Statement For the Year Ended December 31, 2009
Sales $600
COGS 240
Gross profit $360
Operating and other expenses 265
Net income $ 95