A comparative balance sheet for Lyon Company appears below:

Lyon Company

Comparative Balance Sheet

Dec. 31, 2008Dec. 31, 2007

Assets

Cash$23,000$10,000

Accounts receivable18,00014,000

Inventory 27,00018,000

Prepaid expenses6,0009,000

Long-Term investments -0-18,000

Equipment 60,00032,000

Accumulated depreciation-equipment(18,000)(14,000)

Total assets$116,000$87,000

Liabilities and Stockholders' Equity

Accounts payable$17,000$7,000

Bonds payable37,00047,000

Common stock40,000 23,000

Retained earnings22,00010,000

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.