Reference no: EM131873929

Question - The comparative balance sheets for Nelson Company appear below:

Comparative Balance Sheet

Dec. 31, 2012 Dec. 31, 2011

Assets

Cash $ 30,000 $13,000

Accounts receivable16,000 14,000

Prepaid expenses 7,000 9,000

Inventory 25,000 15,000

Long-term investments-0- 18,000

Equipment 110,000 30,000

Accumulated depreciation-equipment  (18,000) (14,000)

Total assets $170,000 $85,000

Liabilities and Stockholders' Equity

Accounts payable $ 25,000 $ 7,000

Bonds payable 37,000 45,000

Common stock 90,000 23,000

Retained earnings 18,000 10,000

Total liabilities and stockholders' equity $170,000 $85,000

Additional information:

1. Net income for the year ending December 31, 2012, was $20,000.

2. Cash dividends of $12,000 were declared and paid during the year.

3. Long-term investments that had a book value of $18,000 were sold for $13,000.

4. Sales for 2012 are $120,000.

5. Issued new common stock of $50,000 in exchange for new equipment

Instructions - Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method.