Missing Data; Statement of Cash Flows [LO1, LO2]

Estes Company listed the net changes in its balance sheet accounts for the past year as follows:

Debits > Credits >
Credits by: Debits by:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,000 Accounts receivable . . . . . . . . . . . . . 170,000 Inventory . . . . . . . . . . . . . . . . . . . . . . $ 63,000 Prepaid expenses . . . . . . . . . . . . . . . 4,000 Long-term loans to subsidiaries . . . . 80,000 Long-term investments . . . . . . . . . . . 90,000 Plant and equipment . . . . . . . . . . . . . 340,000 Accumulated depreciation . . . . . . . . 65,000 Accounts payable . . . . . . . . . . . . . . . 48,000 Accrued liabilities . . . . . . . . . . . . . . . 5,000 Income taxes payable . . . . . . . . . . . . 9,000 Bonds payable . . . . . . . . . . . . . . . . . 200,000 Common stock . . . . . . . . . . . . . . . . . 120,000 Retained earnings . . . . . . . . . . . . . . 75,000 $660,000 $660,000 The following additional information is available about last year’s activities:

a. Net income for the year was $ ? .

b. The company sold equipment during the year for $35,000. The equipment originally cost the company $160,000, and it had $145,000 in accumulated depreciation at the time of sale.

c. The company declared and paid $10,000 in cash dividends during the year.

d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:

Beginning Ending Plant and equipment . . . . . . . . $2,850,000 $3,190,000 Accumulated depreciation . . . . $975,000 $1,040,000

e. The balance in the Cash account at the beginning of the year was $109,000; the balance at the end of the year was $ ? .

f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.
Required:
Using the indirect method, prepare a statement of cash flows for the year.