Cash Flow Statement for Carey Corporation Carey Corporation wishes to prepare a statement of cash flows for 2001. Carey had cash on hand of $58,000 on January 1, 2001. During the year, Carey reported the following:

1. Sales of $620,000.

2. Sale of investments for $135,000 (including a gain of

$7,000).

. Cost of goods sold of $450,000.

. Purchase of treasury stock of $52,000.

Salaries and wage expense of $80,000.

. Payment of $60,000 to retire bonds.

. Purchase of land for $71,000.

. Depreciation expense of $24,000.

. Payment of dividends of $30,000.

. Tax expense of $10,000.

=DOMIDWNAW . Other expense of $20,000.

Carey Corporation also reported the following changes in current assets and liabilities during 2001:

12. Accounts receivables increased from $45,000 to

$53,000.

13. Inventory decreased from $87,000 to $83,000.

14. Wages payable increased from $9,000 to $15,000.

15. Accounts payable decreased from $36,000 to $31,000.

16. Taxes payable increased from $6,000 to $7,500.

a. Compute net income for 2001 for Carey Corporation.

b. Prepare a statement of cash flows for 2001 for Carey Corporation.