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Fred Slezak presented the following comparative balance sheet: FRED SLEZAK CORPORATION Comparative Balance Sheet December 31, 20X5 and 20X4 Assets 20X5 20X4 Current assets Cash

Fred Slezak presented the following comparative balance sheet:
FRED SLEZAK CORPORATION
Comparative Balance Sheet
December 31, 20X5 and 20X4
Assets 20X5 20X4
Current assets
Cash $ 664,000 $ 9,000
Accounts receivable 375,000 345,000
Inventories 150,000 160,000
Prepaid expenses 35,000 25,000
Total current assets $ 1,224,000 $ 539,000
Property, plant, & equipment
Land $ 300,000 $ 400,000
Building 700,000 700,000
Equipment 530,000 450,000
$ 1,530,000 $ 1,550,000
Less: Accumulated depreciation (300,000) (270,000)
Total property, plant, & equipment $ 1,230,000 $ 1,280,000
Total assets $ 2,454,000 $ 1,819,000
Liabilities
Current liabilities
Accounts payable $ 112,000 $ 119,000
Interest payable 2,000 -
Total current liabilities $ 114,000 $ 119,000
Long-term liabilities
Long-term note payable 80,000 -
Total liabilities $ 194,000 $ 119,000
Stockholders' equity
Common stock ($1 par) $ 700,000 $ 600,000
Paid-in capital in excess of par 800,000 400,000
Retained earnings 760,000 700,000
Total stockholders' equity $ 2,260,000 $ 1,700,000
Total liabilities and equity $ 2,454,000 $ 1,819,000
Additional information about transactions and events occurring in 20X5 follows:
Dividends of $55,000 were declared and paid.
Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses.
The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold.
The increase in paid-in capital resulted from issuing additional shares for cash.
The income statement for the year ending December 31, 20X5, included the following key amounts:
Sales $ 2,000,000
Cost of goods sold 1,200,000
Salaries expense 400,000
Advertising expense 150,000
Depreciation expense 30,000
Utilities expense 15,000
Interest expense 5,000
Loss on sale of land 45,000
Income tax expense 40,000
Net income 115,000
Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes.

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