Problem - Comparative balance sheets and income statement of Lexington Company are presented below.
Comparative Balance Sheet as of December 31 Additional information:
2012 2011
Cash $15,000 $10,000
Noncash current assets 85,000 58,000
Long-term investments 10,000 53,000
Plant assets 335,000 215,000
Total $445,000 $336,000
Accumulated depreciation $20,000 $40,000
Current liabilities 40,000 22,000
Bonds payable 75,000 -0-
Common stock 254,000 254,000
Retained earnings 56,000 20,000
Total: $445,000 $336,000
1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2011, were sold in 2012 for $34,000.
2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2012 for $8,000.
3. Net income for 2012 was $46,000.
4. Dividends paid amounted to $10,000.
Requirement: Prepare a statement of cash flows for the year 2012 using the indirect method.