Preparation of statement of cash flows (format provided). The balance sheets for ABC Company showed the following information. Additional information concerning transactions and events during 2011 are presented below. ABC Company Balance Sheet December 31 2011 2010 Cash $ 30,900 $ 10,200 Accounts receivable (net) 43,300 20,300 Inventory 35,000 42,000 Long-term investments 0 15,000 Property, plant & equipment 236,500 150,000 Accumulated depreciation (37,700) (25,000) $308,000 $212,500 Accounts payable $ 17,000 $ 26,500 Accrued liabilities 21,000 17,000 Long-term notes payable 70,000 50,000 Common stock 130,000 90,000 Retained earnings 70,000 29,000 $308,000 $212,500 Additional data: Net income for the year 2011, $76,000. Depreciation on plant assets for the year, $12,700. Sold the long-term investments for $28,000 (assume gain or loss is ordinary). Paid dividends of $35,000. Purchased machinery costing $26,500, paid cash. Purchased machinery and gave a $60,000 long-term note payable. Paid a $40,000 long-term note payable by issuing common stock. Instructions Using the format provided on the next page, prepare a statement of cash flows (using the indirect method) for 2011 for ABC Company. ABC Company Statement of Cash Flows For the Year Ended December 31, 2011 Increase (Decrease) in Cash Cash flows from operating activities Net income $__________ Adjustments to reconcile net income to net cash provided by operating activities: ________________________________ $__________ Net cash provided (used) by operating activities ________ Cash flows from investing activities _________________________________ ________ Net cash provided (used) by investing activities ________ Cash flows from financing activities __ Net cash provided (used) by financing activities ________ Net increase (decrease) in cash $ Cash, January 1, 2011 Cash, December 31, 2011 $