Cash flow statement

Following are selected balance sheet accounts of Chocolate Bakery at December 31, 2013 and 2012, and the increases or decreases in each account from 2012 to 2013.  Also presented is selected income statement information for the year ended December 31, 2013, and additional information.

Selected balance sheet accounts           2013                2012        (Increase or Decrease)

Assets:

      Accounts receivable                        $   34,000        $  24,000        $10,000

      Property, plant, and equipment        277,000           247,000          30,000

      Accumulated depreciation                (178,000)         (167,000)       (11,000)

Liabilities and stockholders' equity:

      Bonds payable                               49,000             46,000            3,000

      Dividends payable                          8,000               5,000              3,000

      Common stock, $1 par                   22,000             19,000            3,000

      Additional paid-in capital                 9,000               3,000              6,000

      Retained earnings                          104,000           91,000            13,000

Selected income statement information for the year ended December 31, 2013

Sales revenue                         $155,000

Depreciation                           33,000

Gain on sale of equipment        13,000

Net income                             28,000

Additional information

• Accounts receivable relate to sales of merchandise.

• During 2013, equipment costing $40,000 was sold for cash.

• During 2013, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:

Create the statement of Cash flows for Chocolate Bakery for the year ended December 13, 2013.  Use the indirect method.