Condensed financial data of Lemere Inc. follow.

Additional information:1. New plant assets costing $100,000 were purchased for cash during the year.2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.3. Bonds payable matured and were paid off at face value for cash.4. A cash dividend of $26,030 was declared and paid during the year.InstructionsPrepare a statement of cash flows using the indirectmethod.

Transcribed Image Text:

LEMERE INC. Comparative Balance Sheets December 31 Assets 2012 2011 $ 80,800 87,800 112,500 $ 48,400 Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets 38,000 102,850 26,000 109,000 28,400 138,000 285,000 242,500 Accumulated depreciation (50,000) (52,000) Total $682,500 $514,750 Liabilities and Stockholders' Equity $ 67,300 21,000 146,000 175,000 Accounts payable Accrued expenses payable Bonds payable Common stock $102,000 16,500 110,000 220,000 234,000 Retained earnings 105,450 Total $682,500 $514,750 LEMERE INC. Income Statement Data For the Year Ended December 31, 2012 Sales $388,460 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income taxes $135,460 12,410 46,500 27,280 Interest expense Loss on sale of plant assets 4,730 233,880 7,500 $154,580 Net income