Preparing a statement of cash flows. (Adapted from CPA examination.) Exhibit 15.13 presents the comparative balance sheets for Plainview Corporation for 2008 and 2009.

The following additional information relates to 2009 activities:

(1) The Retained Earning account changed as follows:

(2) On January 2, 2009, Plainview Corporation sold for $127,000 marketable securities with an acquisition cost and a carrying va1ue of $110,000. The firm used the proceeds from this sale, the funds in the bond sinking fund, and the amount received from the issuance of the 8% debentures to retire the 6% mortgage bonds
(3) The firm reissued treasury stock on February 28. 2009. It treats "losses" on the reissue of treasury stock as a charge to Retained Earnings.
(4) The firm declared a stock dividend On October 31, 2009, when the market price of Plainview Corporation's stock was $12 per share.
(5) On April 30, 2009, a fire destroyed a warehouse that cost $100,000 and on which depreciation of $65,000 had accumulated. The firm carried no insurance of this loss Plainview Corporation properly included the loss in the Continuing Operations section of the income statement.
(6) Plant and equipment transactions consisted of the sale of a building at its carrying value of $4.000 and the purchase of machinery for $28,000.
(7) The firm wrote off accounts receivable as uncollectible totaling $l6,300 in 2008 and $18,500 in 2009. It recognized expired insurance of $4.l00 in 2008 and $3,900 in
2009.
(8) The subsidiary, which is 40% owned, reported a loss of $44,800 for 2009.
a. Prepare a T-account work sheet for Plainview Corporation for 2009 for preparing a statement of cash flows.
b. Prepare a formal statement of cash flows using the indirect method for the year ending December 31,2009.

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Retained Earnings, December 31, 2008 Add Net Income Subtatal Deduct: Cash Dividends Loss an Reissue of Treasury Stock.. Stack Dividend Retained Earnings, December 31, 2009 $758,200 236,580 $994,780 $130,000 3,000 233,200 100,200 $761,580