Additional information 1. Wrote off $500 accounts receivable as uncollectible. 2. Sold a fixed asset for $4,000 cash (cost, $15,000; accumulated depreciation, $9,000). 3. Issued common stock for $5,000 cash. 4. Declared and paid a cash dividend, $5,000. 5. Purchased land, $20,000 cash. 6. Acquired land for $21,000 and issued common stock as payment in full. 7. Acquired fixed assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable. 8. Paid a $10,000 long-term note installment by issuing common stock to the creditor. 9. Borrowed cash on long-term note, $20,000. Required Prepare a current year statement of cash flows using the indirect method to report cash flows from operating activities. Label Corporation's recent comparative balance sheets and income statement, along with additional information follow. Prior Current Income Statement, For Year Current Balance Sheets, December 31 Year Year ended December 31 Year Assets Sales revenue.. $80,000 Cash and cash equivalents $ 15,000 $ 31,000 Cost of goods sold (35,000) Accounts receivable.. 30,000 28,500 Depreciation expense.. (5,000) Allowance for doubtful accounts. (1,500) (2,000) Bad debt expense. (1,000) Inventory..... 10,000 15,000 Insurance expense. (1,000) Prepaid insurance.. 2,400 1,400 Interest expense.. (2,000) Fixed assets. 80,000 81,000 Salaries expense (12,000) Accumulated depreciation (20,000) (16,000) Income tax expense.. (3,000) Land.... Total assets. Liabilities and Stockholders' Equity Accounts payable.. $ 10,000 $ 11,000 2,000 - 1,000 1,000 40,100 81,100 Other expenses, including loss $156,000 $220,000 on sale of fixed assets (15,000) Net income... $ 6,000 Salaries payable. Interest payable Notes payable, long-term. 20,000 46,000 Common stock, no-par. 100,000 136,000 Retained earnings 24,000 25,000 Total liabilities and stockholders' equity $156,000 $220,000