DB 5.5 - Preparation of a Statement of Cash Flows Using the Indirect Method The comparative balance sheets of Tait Corp. are presented below: Current Prior Year Year Cash $ 30,000 $ 40,000 Accounts Receivable 69,000 80,000 Inventory 64,000 50,000 Prepaid Rent 2.000 18,000 Total Current Assets $ 165,000 188,000 Land $ 60,000 $ 150,000 Plant and Equipment 575,000 500,000 Accumulated Depreciation (310.000) (250.000) Total Long-Term Assets $ 325,000 S 400.000 Total Assets $ 490,000 S 588.000 Accounts Payable $ 65,000 $ 60,000 Other Accrued Liabilities 50.000 88.000 Total Current Liabilities $115.000 S 148.000 Long-Term Bank Loan Payable $ 75,000 $ 150,000 Total Liabilities $ 190,000 S 298,000 Common Stock $ 100.000 $ 100,000 Retained Earnings 200.000 190.000 Total Stockholders' Equity $ 300.000 $ 290,000 Total Liabilities and Stockholders' Equity $ 490,000 S 588.000 Additional Information: Net Income during the year was $20,000. Dividends of $10,000 were declared and paid during the year. Plant assets that originally cost $50,000 and had a book value of $30,000 were sold during the year for $25,000 in cash. Also, some new plant assets were purchased during the year for cash, Land was sold for $115.000 during the year. (No new Land was purchased during the year.) A portion of the bank loan was repaid during the year. Required: Prepare a statement of cash flows for Tait Corp. for the year ended December 31" of the current year using the Indirect Method as illustrated in class