On the basis of the following data for larson Co. for 2010 and the preceding year ended December 31, 2010, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activites. Assume that equipment costing $125000 was purchased for cash and equipment costing $85000 with accumulated depreciation of $65000 was sold for $15000; that the stock was issued for cash; and that the only entries in the retaned earnings account were net income of $51000 and cash dividends declared of $13000.