The comparative balance sheets for Vanco Company as of December 31 are presented below.
|
VANCO COMPANY
Comparative Balance Sheets
December 31
|
|
Assets
|
2012
|
2011
|
|
Cash
|
$ 68,000
|
$ 45,000
|
|
Accounts receivable
|
50,000
|
58,000
|
|
Inventory
|
151,450
|
142,000
|
|
Prepaid expenses
|
15,280
|
21,000
|
|
Land
|
145,000
|
130,000
|
|
Equipment
|
225,000
|
155,000
|
|
Accumulated depreciation-equipment
|
(45,000)
|
(35,000)
|
|
Buildings
|
200,000
|
200,000
|
|
Accumulated depreciation-buildings
|
(60,000)
|
(40,000)
|
|
Total
|
$749,730
|
$676,000
|
|
Liabilities and Stockholders" Equity
|
|
|
|
Accounts payable
|
$ 44,730
|
$ 36,000
|
|
Bonds payable
|
300,000
|
300,000
|
|
Common stock, $1 par
|
200,000
|
160,000
|
|
Retained earnings
|
205,000
|
180,000
|
|
Total
|
$749,730
|
$676,000
|
Additional information:
1. Operating expenses include depreciation expense of $42,000.
2. Land was sold for cash at book value.
3. Cash dividends of $12,000 were paid.
4. Net income for 2012 was $37,000.
5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash.
6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method.