Presented on the next page are the comparative balance sheets for Pester Company at December 31.

Additional information:
1. Operating expenses include depreciation expense $55,000 and charges from prepaid expenses of $4,400.
2. Land was sold for cash at cost.
3. Cash dividends of $84,290 were paid.
4. Net income for 2014 was $47,890.
5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $33,000 was sold for $37,000 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 2014 using the indirectmethod.

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PESTER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation Equipment Accumulated depreciation-equipment 2014 S 41,000 77,000 172,000 12,140 110,000 250,000 (70,000) 215,000 (70,000) S737,140 2013 S57,000 64,000 140,000 16,540 150,000 250,000 (50,000) 175,000 (42,000) S760,540 -buildings Total Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock, $1 par Retained earnings S58,000 235,000 280,000 164,140 S737,140 S 45,000 265,000 250,000 200,540 $760,540 Total