The comparative balance sheet of Alliance Structures Inc. for December 31, 2008 and 2007, is as follows:
|
Cash
|
$ 90
|
$ 23
|
|
Accounts receivable (net)
|
30
|
27
|
|
Inventories
|
24
|
21
|
|
Land
|
35
|
55
|
|
Equipment
|
32
|
22
|
|
Accumulated depreciation-equipment
|
(9)
|
(5)
|
|
|
$202
|
$143
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable (merchandise creditors)
|
$ 17
|
$ 10
|
|
Dividends payable
|
1
|
-
|
|
Common stock, $1 par
|
6
|
3
|
|
Paid-in capital in excess of par-common stock
|
30
|
10
|
|
Retained earnings
|
148
|
120
|
|
Total
|
$202
|
$143
|
The following additional information is taken from the records:
a. Land was sold for $15.
b. Equipment was acquired for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $40 credit to Retained Earnings for net income.
f. There was a $12 debit to Retained Earnings for cash dividends declared.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.