100 Preparing the statement of cash flows-indirect method with noncash transactions [35-45 min] The 2012 comparative balance sheet and income statement of All Wired, Inc., follow: Current assets: Cash and cash equivalents Accounts receivable Inventories Plant assets: Land Equipment, net Total assets Current liabilities: Accounts payable Accrued liabilities ALL WIRED, INC. Comparative Balance Sheet December 31, 2012 and 2011 Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity Revenues Sales revenue Interest revenue Total revenues Expenses 2012 Cost of goods sold Salary expense 2011 $ 26,700 $ 15,600 $ 11,100 26,500 25,300 1,200 79,900 91,900 (12,000) ALL WIRED, INC. Income Statement Year Ended December 31, 2012 35,500 11,000 24,500 102,900 90,700 12,200 $ 271,500 $234,500 $ 37,000 Increase (Decrease) $ 35,600 $30,500 $ 5,100 28,900 30,600 (1,700) 77,000 103,000 (26,000) 88,200 64,300 23,900 41,800 6,100 35,700 S 271,500 $ 234,500 $ 37,000 $ 209,200 72,400 $438,000 8,500 446,500 Common stock Retained earnings Total liabilities and stockholders' equity Revenues Sales revenue ALL WIRED, INC. Income Statement Year Ended December 31, 2012 Interest revenue Total revenues Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses 88,200 64,300 23,900 41,800 6,100 35,700 $ 271,500 $ 234,500 $ 37,000 Net income $ 209,200 72,400 14,500 10,000 21,500 19.400 $ 438,000 8,500 446,500 347,000 $ 99,500 Additionally, All Wired purchased land of $24,500 by financing it 100% with long- term notes payable during 2012. During the year, there were no sales of land or equip- ment, no additional issuances of notes payable, no retirements of stock, and no treasury stock transactions