On the basis of the following data for Larson Co. for the year ending December 31, 2011 and the preceding year ending December 31,2010 prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. In addition to the balance sheet, assume that: -Equipment costing $125,000 was purchased for cash. -Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. -The stock was issued for cash. -The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000. 2011 2010 Cash 100,000 78,000 Accounts Receivable (net) 78,000 85,000 Inventories 101,500 90,000 Equipment 410,000 370,000 Accumulated Depreciation (150,000) (158,000) $539,500 $465,500 Accounts Payable(merchandise creditors 58,500 55,000 Cash dividends Payable 5,000 4,000 Common stock, $10 par 200,000 170,000 Paid-In capital in excess of par common stock 62,000 60,000 Retained earnings 214,000 176,000 $539,500 $465,000