Presented on the next page are the comparative balance sheets for Martin Company at December 31.
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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 $69,290 were paid.
4. Net income for 2011 was $32,890.
5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $23,000 was sold for $25,000 cash.
6. Bonds were converted at face value by issuing 30,000 shares of $1 par value common stock.
Instructions
Prepare a statement of cash flows for 2011 using the indirectmethod.