3. Preparing the statement of cash flows-indirect method [35-45 min] Accountants for Smithson, Inc., have assembled the following data for the year ended December 31, 2012: Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories. Current liabilities: Accounts payable Income tax payable Transaction Data for 2012: Issuance of common stock for cash Depreciation expense... Purchase of equipment Acquisition of land by issuing long-term note payable $ 45,000 18,000 70,000 113,000 December 31, 2012 $ 106,100 64,300 80,000 $7,700 14,500 2011 $ 26,000 68,900 75,000 56,100 17,000 Payment of note payable Payment of cash dividends Issuance of note payable to borrow cash Gain on sale of building Net income... 68,500 Cost basis of building sold..... $50,000 www. $46,100 $2,000 68,000 3,500 ment 1. Prepare Smithson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities