Reference no: EM13526588

Presented on the next page are the comparative balance sheets for Lybeck Company at December 31.

LYBECK COMPANY  Comparative Balance Sheets  December 31
Assets	2012	2011
Cash	$ 41,000	$ 47,000
Accounts receivable	67,000	70,000
Inventory	182,000	124,000
Prepaid expenses	12,140	16,540
Land	130,000	150,000
Equipment	205,000	175,000
Accumulated depreciation-equipment	(70,000)	(42,000)
Buildings	270,000	270,000
Accumulated depreciation-buildings	(70,000)	(50,000)
Total	$767,140	$760,540
Liabilities and Stockholders" Equity
Accounts payable	$ 48,000	$ 45,000
Bonds payable	265,000	265,000
Common stock, $1 par	280,000	250,000
Retained earnings	174,140	200,540
Total	$767,140	$760,540

Additional information:

1. Operating expenses include depreciation expense $65,000 and charges from prepaid expenses of $4,400.

2. Land was sold for cash at cost.

3. Cash dividends of $57,000 were paid.

4. Net income for 2012 was $30,600.

5. Equipment was purchased for $70,000 cash. In addition, equipment costing $40,000 with a book value of $23,000 was sold for $25,000 cash.

6. 30,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $30,000.

Instructions

Prepare a statement of cash flows for 2012 using the indirect method.