12. On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing S125,000 was purchased for cash and the land was sold for S15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. rrent year Prior year Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation 65,000 54,000 85,000 106,500 90,000 20,000 495,000370,000 (215,000) 158,000) 78,000 Accounts payable (merchandise creditors) Common stock, $10 par Paid-in capital in excess of par common stock Retained earnings 55,000 200,000170,000 60,000 214.000176,000 S 529,500 $461000 53,500 62,000