dolution

Prepare a statement of cash flows—indirect method.

Presented on the next page are the comparative balance sheets for Lybeck Company at December 31.

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.