he comparative balance sheets for Spicer Company as of December 31 are presented below. 

Additional information: 

1. Operating expenses include depreciation expense of $42,000 ($20,000 of depreciation expense for buildings and $22,000 for equipment).

2. Land was sold for cash at book value. 

3. Cash dividends of $12,000 were paid. 

4. Net income for 2022 was $37,000. 

5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 

6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. 

Instructions 

Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method.

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Spicer Company Comparative Balance Sheets December 31 Assets 2022 2021 $ 68,000 $ 45,000 Cash Accounts receivable 58,000 50,000 Inventory Prepaid expenses 151,450 142,000 15,280 21,000 Land 130,000 145,000 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 200,000 200,000 (60,000) (40,000) 225,000 155,000 (45,000) $749,730 (35,000) Total $676,000 Liabilities and Stockholders' Equity $ 44,730 $ 36,000 Accounts payable Bonds payable Common stock, $1 par Retained earnings 300,000 300,000 200,000 160,000 205,000 180,000 Total $749,730 $676,000