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.