Presented on the next page are the comparative balance sheets for Vernet Company Prepare a statement of cash at December 31.

Vernet Company Comparative Balance Sheets December 31 Assets _ 2014 — _ 2013 _ Cash $ 41,460 $ 57,000 Accounts receivable 77,000 64,000 Inventory 170,000 140,000 Prepaid expenses 12,140 16,540 Land 140,000 150,000 Buildings 250,000 250,000 Accumulated depreciation—buildings (70,000) (50,000)
Equipment 215,000 175,000 Accumulated depreciation—equipment (70,000) (42,000)
Total $765,600 $760,540 Liabilities and Stockholders’ Equity Accounts payable $ 58,000 $ 45,000 Bonds payable 265,000 265,000 Common stock, $1 par 275,000 250,000 Retained earnings 167,600 200,540 Total $765,600 $760,540 Additional information:
L:
“Rw Operating expenses include depreciation expense $57,000 and charges from prepaid expenses of $4,400.
Land was sold for cash at cost for $35,000 . Cash dividends of $82,940 were paid.
. Net income for 2014 was $50,000.
Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $31,000 was sold for $37,000 cash.
. Issued 25,000 shares of $1 par value common stock in exchange for land with a fair value of $25,000.
Instructions Cash from operations $75,400 Prepare a statement of cash flows for 2014 using the indirect method.