ACC 102: Comparative balance sheet accounts of Sharpe Company are presented below:

SHARPE COMPANY

COMPRATIVE BALANCE SHEET ACCOUNTS

AS OF DECEMBER 31

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Debit Balances 2014 2013

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cash $ 70,000 $ 51,000

Accounts Receivable 155,000 130,000

Inventory 75,000 61,000

Investments (available-for-sale) 55,000 85,000

Equipment 70,000 48,000

Buildings 145,000 145,000

Land 40,000 25,000

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Totals $ 610,000 $ 545,000

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Credit Balances

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Allowance for Doubtful Accounts $ 10,000 $ 8,000

Accumulated Depreciation -Equipment 21,000 14,000

Accumulated Depreciation-Buildings 37,000 28,000

Accounts Payable 66,000 60,000

Income Taxes Payable 12,000 10,000

Long-Term Notes Payable 62,000 70,000

Common Stock 310,000 260,000

Retained Earnings 92,000 95,000

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Totals $ 610,000 $ 545,000

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Additional data:

1) Equipment that cost $10,000 and was 60% depreiated was sold in 2014.

2) Cash dividends were declared and paid during the year.

3) Common stock was issued in exchange for land.

4) investments that cost $35,000 were sold during the year.

5) There were no write-offs of uncollectible accounts during the year.

Sharpe's 2014 income statement is as follows:

Sales revenue $ 950,000

Less: Cost of goods sold 600,000

Gross profit 350,000

Less: Operating expenses(includes depreciation expense and bad debt expense) 250,000

Income from operations 100,000

Other revenues and expenses

Gain on sale of investments $ 15,000

Loss on sale of equipment (3,000) 12,000

Income before taxes 112,000

Income taxes 45,000

Net income $ 67,000

Prepare a statement of cash flows using the indiredt method.