P17-11B Presented are the comparative balance sheets for Vernet Company at December 31. VERNET COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $41,000 S57,000 Accounts receivable 77,000 64,000 Inventory 172,000 140,000 Prepaid expenses 12,140 16,540 Land 110,000 150,000 Equipment 215,000 175,000 Accumulated depreciation-equipment (70,000) (42,000) Buildings 250,000 250,000 Accumulated depreciation -buildings (70,000) (50,000) Total S737,140 $760,540 Liabilities and Stockholders' Equity S 58,000 S 45,000 Accounts payable Bonds payable 235,000 265,000 Common stock, $1 par 280,000 250,000 Retained earnings 164,140 200,540 $737,140 $760,540 Total Additional information: 1. Operating expenses include depreciation expense S55,000 and charges from prepaid expenses of $4,400. 2. Land was sold for cash at cost. Cash dividends of $84,290 were paid. 4. Net income for 2012 was $47,890 Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a 3. 5. book value of $33,000 was sold for $37,000 cash. Bonds were converted at face value by issuing 30,000 shares of 6. $1 par value common stock Instructions Prepare a statement of cash flowss for 2012 using the indirect method