Condensed financial data of Lemere Inc. follow.
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LEMERE INC.
Comparative Balance Sheets
December 31
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Assets
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2012
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2011
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Cash
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$ 80,800
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$ 48,400
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Accounts receivable
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87,800
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38,000
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Inventory
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112,500
|
102,850
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Prepaid expenses
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28,400
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26,000
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Long-term investments
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138,000
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109,000
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Plant assets
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285,000
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242,500
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Accumulated depreciation
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(50,000)
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(52,000)
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Total
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$682,500
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$514,750
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|
|
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Liabilities and Stockholders" Equity
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|
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Accounts payable
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$102,000
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$ 67,300
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Accrued expenses payable
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16,500
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21,000
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Bonds payable
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110,000
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146,000
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Common stock
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220,000
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175,000
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Retained earnings
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234,000
|
105,450
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Total
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$682,500
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$514,750
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LEMERE INC.
Income Statement Data
For the Year Ended December 31, 2012
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Sales
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$388,460
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Less:
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|
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Cost of goods sold
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$135,460
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|
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Operating expenses, excluding
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|
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depreciation
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12,410
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Depreciation expense
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46,500
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Income taxes
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27,280
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Interest expense
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4,730
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Loss on sale of plant assets
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7,500
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233,880
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Net income
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$154,580
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Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.