Prepare a Statement of Cash Flows, Indirect Method. Glenbrook Companys most recent balance sheet, income statement, and other important information for 2020 are presented as follows.

Additional data for 2020 are as follows:

Sold equipment with a book value of $30,000 (= $40,000 cost $10,000 accumulated depreciation) for $28,000 cash

Purchased equipment for $96,000 cash

There were no sales of long-term investments (Hint: Solve for the purchase of long-term investments.)

Issued bonds for $16,000 cash

Repurchased common stock (treasury shares) for $45,000 cash

Declared and paid $12,000 in cash dividends

Required:

Use the four steps described in the chapter to prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Refer to the format presented in Figure 6.7 Statement of Cash Flows (Home Store, Inc.).

Briefly describe the major changes in cash identified in the statement of cash flows.

Glenbrook Company Balance Sheet December 31, 2020 and December 31, 2019 2020 Assets Current assets Cash Accounts receivable Merchandise inventory Prepaid expenses Noncurrent assets Property, plant, and equipment Accumulated depreciation Long-term investments Total assets Liabilities and owners' equity Current liabilities Accounts payable Income tax payable Noncurrent liabilities Bonds payable Owners' equity Common stock Retained earnings Total liabilities and owners' equity \begin{tabular}{rr} $84,000 & $68,000 \\ 28,000 & 34,000 \\ 54,000 & 38,000 \\ 437,000 & 482,000 \\ 394,000 & 340,000 \\ \hline$997,000 \\ \hline \hline \end{tabular} Glenbrook Company Income Statement for the Year Ended December 31, 2020 Sales Cost of goods sold Gross margin Operating expenses Depreciation expense Operating income Interest expense Loss on sale of equipment Income before taxes Income tax expense Net income $640,000300,000$340,000180,00047,000$113,0005,0002,000$106,00040,000$66,000