A comparative balance sheet for Lyon Company appears below:

LYON COMPANY

Comparative Balance Sheet

Dec. 31, 2008 Dec. 31, 2007

Assets

Cash $ 23,000 $10,000

Accounts receivable 18,000 14,000

Inventory 27,000 18,000

Prepaid expenses 6,000 9,000

Long-term investments -0- 18,000

Equipment 60,000 32,000

Accumulated depreciationequipment (18,000) (14,000)

Total assets $116,000 $87,000

Liabilities and Stockholders' Equity

Accounts payable $ 17,000 $ 7,000

Bonds payable 37,000 47,000

Common stock 40,000 23,000

Retained earnings 22,000 10,000

Total liabilities and stockholders' equity $116,000 $87,000

Additional information:

1. Net income for the year ending December 31, 2008 was $24,000.

2. Cash dividends of $12,000 were declared and paid during the year.

3. Long-term investments that had a cost of $18,000 were sold for $16,000.

4. Sales for 2008 were $120,000.

Instructions

Prepare a statement of cash flows for the year ended December 31, 2008, using the indirect method.