Bessler Company

Comparative Balance Sheet

Assets 20X1 20X0

Cash $ 23,000 $15,000

Accounts receivable 18,000 14,000

Prepaid expenses 6,000 9,000

Inventory 27,000 15,000

Long-term investments -0- 18,000

Equipment 60,000 30,000

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

Total assets $116,000 $87,000

Liabilities and Stockholders' Equity

Accounts payable $21,000 $9,000

Bonds payable 37,000 45,000

Common stock 40,000 23,000

Retained earnings 18,000 10,000

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

Additional information:

1. Net income for the year ending December 31, 20X1, was $20,000.

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

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

4. Sales for 20X1 are $120,000.

Prepare a statement of cash flows for the year ended December 31, 20X1, using the indirect method.

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