The comparative balance sheets for Hinckley Corporation show the following information:
- December 31 2012 2011
- Cash $317,570 $297,120
- Accounts receivable 115,040 106,710
- Inventory 324,770 315,940
- Investments 0 122,400
- Land 166,570 0
- Equipment 358,310 279,330
- Accumulated Depreciation - Equip (83,890) (75,320)
- Totals $1,198,370 $1,046,180
- Accounts payable $216,900 $206,100
- Accrued expenses payable 21,570 27,200
- Dividends payable 11,980 9,420
- Common stock $1 par 64,710 51,260
- Paid-in Capital in excess of par 243,270 142,280
- Retained earnings 639,940 609,920
- Totals $1,198,370 $1,046,180
Additional data related to 2012 are as follows:
1. Investments were sold for $143,210 in cash.
2. Equipment and land were acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $79,190 credit to Retained Earnings.
6. There was a $49,170 debit to Retained Earnings for cash dividends declared.
Instructions:
Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country.