Presented on the next page are the comparative balance sheets for Lybeck Company at December 31.
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LYBECK COMPANY
Comparative Balance Sheets
December 31
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Assets
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2012
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2011
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Cash
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$ 41,000
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$ 47,000
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Accounts receivable
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67,000
|
70,000
|
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Inventory
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182,000
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124,000
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Prepaid expenses
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12,140
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16,540
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Land
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130,000
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150,000
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Equipment
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205,000
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175,000
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Accumulated depreciation-equipment
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(70,000)
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(42,000)
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Buildings
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270,000
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270,000
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Accumulated depreciation-buildings
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(70,000)
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(50,000)
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Total
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$767,140
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$760,540
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|
|
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Liabilities and Stockholders" Equity
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|
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Accounts payable
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$ 48,000
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$ 45,000
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Bonds payable
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265,000
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265,000
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Common stock, $1 par
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280,000
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250,000
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Retained earnings
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174,140
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200,540
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Total
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$767,140
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$760,540
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Additional information:
1. Operating expenses include depreciation expense $65,000 and charges from prepaid expenses of $4,400.
2. Land was sold for cash at cost.
3. Cash dividends of $57,000 were paid.
4. Net income for 2012 was $30,600.
5. Equipment was purchased for $70,000 cash. In addition, equipment costing $40,000 with a book value of $23,000 was sold for $25,000 cash.
6. 30,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $30,000.
Instructions
Prepare a statement of cash flows for 2012 using the indirect method.