Dec. 31, 2011 PART A. Below are the balance sheet and income statement for Leonard Company Assets Dec. 31, 2010 Current Assets: Cash and cash equivalents $52,000 Accounts Receivable, net 168,000 Inventory 212,000 Total Current Assets 432,000 Land 97,000 Property & Equipment - at cost 300,000 Less Accumulated depreciation (170,000) Net Property & Equipment 130,000 Total Assets $659,000 Liabilities and Equity Current Liabilities: Accounts payable - trade $78,000 Interest Payable 8,000 Total Current Liabilities 86,000 $63,000 157,000 214,000 434,000 107,000 333,000 (182,000) 151,000 $692,000 $83,000 7,000 90,000 Note Payable Common Stock Retained Earnings 100,000 350,000 123,000 80,000 375,000 147,000 $659,000 $692,000 $800,000 Total Liabilities and Stockholders' Equity For year ended December 31, 2011 Revenues Expenses Cost of Goods Sold Wages and Salaries Expense Depreciation Expense Interest Expense Income Tax Expense Total Plus: Gain on Sale of Equipment Net Income 451,800 200,000 48,000 7,200 25,000 (732,000) 6,000 $74,000 Additional information: 1. During the year, Leonard sold for $20,000 equipment costing $50,000 with $36,000 in Accumulated Depreciation. 2. Dividends were declared and paid to common stockholders during the year. No shares were repurchased during the year. 3. No new debt was issued and no land was sold during 2011. 4. All the transactions related to plant assets, investment, long-term debt, dividends, and common stock only involve cash. Required: a. Prepare the Statement of Cash Flows using indirect method [20 POINTS]