The following comparative balance sheets and other data are for Cellular Telephone

\section*{Problem 16-2A}

Sales, Inc.:

1. Land was bought for \(\$ 37,500\) cash. The company intends to build a building on the land.
Additional data Currently the company leases a building for its operations.
2. Equipment costing \(\$ 50,000\) with accumulated depreciation of \(\$ 30,000\) was sold for \(\$ 23,500\) (a gain of \(\$ 3,500\) ), and equipment costing \(\$ 20,000\) was purchased for cash.
3. Depreciation expense for the year was \(\$ 37,500\).
4. Common stock was issued for \(\$ 52,500\) cash.
5. Dividends declared and paid in 2000 totaled \(\$ 32,950\).
6. Net income was \(\$ 37,000\).
7. The company paid interest of \(\$ 3,000\) and income taxes of \(\$ 17,000\).

Required Prepare a statement of cash flows under the indirect method. Also prepare any necessary

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Cash.. CELLULAR TELEPHONE SALES, INC. Comparative Balance Sheets December 31, 2000 and 1999 2000 1999 Assets Accounts receivable, net Merchandise inventory Supplies on hand. Prepaid insurance. Land. Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity $ 76,105 $51,000 26,075 24,250 30,000 35,000 1,750 2,550 1,400 1,200 180,000 142,500 270,000 300,000 (75,000) (67,500) $510,330 $489,000 Accounts payable Salaries payable. Accrued liabilities payable. Long-term note payable Common stock ($5 par) $ 45,330 $ /6,300 4,000 2,000 2,000 8,250 150,000 150,000 185,000 165,000 + Paid-in capital in excess of par 32,500 -0- Retained earnings 91,500 87,450 + Total liabilities and stockholders' equity $510,330 $489,000