PR 16-2B Statement of cash flows-indirect method The comparative balance sheet of Beets Industries, Inc. at December 31, 2013 and 2012, is as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash Accounts receivable (net) $ 379,920 570,240 $ 309,360 507,600 Inventories 761,040 876,480 Prepaid expenses 27,120 21,600 Land 259,200 259,200 Buildings. 1,468,800 972,000 Accumulated depreciation-buildings. (399,600) (355,320) Machinery and equipment... 669,600 669,600 Accumulated depreciation-machinery and equipment.. (183,600) (164,160) Patents 91,680 $3,644,400 103,680 $3,200,040 28,080 $ 794,640 21,600 74,640 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 717,840 Dividends payable... Salaries payable... Mortgage note payable, due 2017. Bonds payable. Common stock, $2 par.. Paid-in capital in excess of par-common stock Retained earnings... 67,680 192,000 0 0 336,000 99,200 43,200 388,000 108,000 2,151,600 1,821,960 $3,644,400 $3,200,040 An examination of the income statement and the accounting records revealed the fol- lowing additional information applicable to 2013: a. Net income, $441,960. b. Depreciation expense reported on the income statement: buildings, $44,280; machinery and equipment, $19,440. c. Patent amortization reported on the income statement, $12,000. d. A building was constructed for $496,800. e. A mortgage note for $192,000 was issued for cash. f. 28,000 shares of common stock were issued at $12 in exchange for the bonds payable. g. Cash dividends declared, $112,320. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities