. A comparative balance sheet for the Rivera Corporation is presented below:

Rivera Corporation

Comparative Balance Sheet

2016 2015

Assets

Cash $ 25,000 $33,000

Accounts receivable (net) 23,000 14,000

Merchandise Inventory 41,000 25,000

Equipment 73,000 78,000

Accumulated Depreciation (27,000) 46,000 (24,000) 54,000

Total Assets $135,000 $126,000

Liabilities and Stockholders' Equity

Accounts payable $ 23,000 $ 43,000

Income Tax Payable 26,000 20,000

Bonds payable 20,000 10,000

Common stock 25,000 25,000

Retained earnings 41,000 28,000

Total liabilities/Stockholders' Equity $135,000 $126,000

Additional information:

1. Net Income for 2016 is $38,000. Net sales for 2016 are $286,000.

2. Cash dividends of $25,000 were declared and paid in 2016

3. During the year, equipment was sold for $10,000 for cash. This equipment cost

$13,000 originally and had a book value of $10,000 at the time of sale.

4. All depreciation for the year was $6,000.

5. Additional equipment was purchased for $8,000 cash.

Prepare a statement of cash flows for the year ended 2016 using the indirect method.