The comparative balance sheets for Berkler Company as of December 31 are presented below.

BERKLER COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 96,000 $ 78,000 Accounts receivable 76,000 70,000 Inventory 52,000 55,000 Prepaid expenses 22,000 18,000 Land 110,000 144,000 Buildings 300,000 300,000 Accumulated depreciation—buildings (60,000) (50,000)

Equipment 264,000 210,000 Accumulated depreciation—equipment (90,000) (80,000)

Total $770,000 $745,000 Liabilities and Stockholders’ Equity Accounts payable $ 26,000 $ 35,000 Bonds payable 350,000 400,000 Common stock, $1 par 170,000 120,000 Retained earnings 224,000 190,000 Total $770,000 $745,000 Additional information:

1 Operating expenses include depreciation expense of $48,000.

2 Land was sold for cash at book value.

3 Cash dividends of $12,000 were paid.

4 Net income for 2014 was $46,000.

5 Equipment was purchased for $88,000 cash. In addition, equipment costing $34,000 with a book value of $6,000 was sold for $9,000 cash.

6 Bonds were converted at face value by issuing 50,000 shares of $1 par value common stock.

Instructions Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.

AppendixLO1