Prepare a Statement of Cash Flows for the year ending December 31, 2014 using the indirect method of reporting cash flows from operating activities.

Assume that equipment that cost $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were net income of $56,000 and cash dividends declared and paid of $18,000.

	Year	Year
	2014	2013
Cash	$65,000	$ 54,000
Accounts receivable (net)	78,000	85,000
Inventories	106,500	90,000
Land	0	20,000
Equipment	495,000	370,000
Accumulated depreciation	(215,000)	(158,000)
	$529,500	$461,000
Accounts payable	$ 53,500	$ 55,000
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
	$529,500	$461,000