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

Additional information:
1. Operating expenses include depreciation expense $65,000 and charges from prepaid expenses of $4,400.
2. Land was sold for cash at cost.
3. Cash dividends of $57,000 were paid.
4. Net income for 2012 was $30,600.
5. Equipment was purchased for $70,000 cash. In addition, equipment costing $40,000 with a book value of $23,000 was sold for $25,000 cash.
6. 30,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $30,000.

Instructions Prepare a statement of cash flows for 2012 using the indirect method.

Transcribed Image Text:

LYBECK COMPANY Comparative Balance Sheets. December 31 Assets 2012 Cash $ 41,000 2011 $ 47,000 Accounts receivable 67,000 70,000 Inventory 182,000 124,000 Prepaid expenses 12,140 16,540 Land 130,000 150,000 Equipment 205,000 175,000 Accumulated depreciation-equipment (70,000) (42,000) Buildings 270,000 270,000 Accumulated depreciation-buildings (70,000) (50,000) Total $767,140 $760,540 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total $ 48,000 $ 45,000 265,000 265,000 280,000 250,000 174,140 200,540 $767,140 $760,540