Refer to the information for Blalock Company above.
The following balance sheets were taken from the records of Blalock Company:

Additional transactions were as follows:
a. Sold equipment costing $12,000 with accumulated depreciation of $9,000 for $2,000.
b. Retired bonds at a price of $60,000 on December 31.
c. Earned net income for the year of $68,000; paid cash dividends of $20,000.
Required:
Prepare a statement of cash flows using the indirect method.

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2015 2016 Assets Cash Accounts receivable Investments Plant and equipment Accumulated depreciation Land $150,000 70,000 100,000 (30,000) 20.000 S310.000 $185,000 80,000 30,000 105,000 (32,000) 30,000 S398,000 Total assets Liabilities and equity Accounts payable Bonds payable Mortgage payable Preferred stock Common stock Retained earnings S 40,000 60,000 S 50,000 50,000 160.000 20,000 100,000 Total liabilities and equity