Prepare a statement of cash (SO 3, AP Presented are the comparative balance sheets for Vernet Company at December 31. VERNET COMPANY Comparative Balance Sheets December 31 2012 $41,000 S57,000 77,000 64,000 172,000 140,000 12,140 16,540 110,000 150,000 215,000 175,000 2011 Assets Cash Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment (0,000) (42,000) Buildings Accumulated depreciation-buildings (70,000) (50,000) 250,000 250,000 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $737,140 $760,540 $ 58,000 S 45,000 235,000 265,000 280,000 250,000 164,140 200,540 $737,140 $760,540 Total Additional information: 1. Operating expenses include depreciation expense $$5,000 and charges from prepaid expenses of $4,400. 2. Land was sold for cash at cost 3. Cash dividends of $84,290 were paid. 4. Net income for 2012 was $47,890. 5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $33,000 was sold for $37,000 cash. 6. Bonds were converted at face value by issuing 30,000 shares of S1 par value common stock. Instructions Prepare a statement of cash flows for 2012 using the indirect method