Problem:
Willingham Corporation's comparative balance sheets are presented below.
WILLINGHAM CORPORATION
Comparative Balance Sheets
December 31
2011 2010
Cash $14,190 $10,830
Accounts receivable $21,040 $23,380
Land 20,880 26,210
Building 70,180 70,180
Accumulated depreciation (15,170) (10,340)
Total 111,120 120,260
Accounts payable $12,190 $31,170
Common stock 75,000 68,870
Retained earnings 23,930 20,220
Total $111,120 $120,260
Additional information:
Net income was $22,890. Dividends declared and paid were $19,180.
All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,800.
Prepare a statement of cash flows for 2011 using the indirect method.