Exercise 12-5

The following information is available for Vaughn Manufacturing for the year ended December 31, 2017.

Beginning cash balance$46,980 Accounts payable decrease 3,863 Depreciation expense 169,128 Accounts receivable increase 8,561 Inventory increase 11,484 Net income 296,600 Cash received for sale of land at book value 36,540 Cash dividends paid 12,528 Income taxes payable increase 4,907 Cash used to purchase building 301,716 Cash used to purchase treasury stock 27,144 Cash received from issuing bonds 208,800

Make a statement of cash flows using the indirect method.