>> Preparing the statement of cash flows-indirect method with noncash transactions [35-45 min] The 2012 comparative balance sheet and income statement of All Wired, Inc., follow: ALL WIRED, INC. Comparative Balance Sheet December 31, 2012 and 2011 2012 2011 Increase (Decrease) Current assets: Cash and cash equivalents Accounts receivable Inventories Plant assets: Land Equipment, net Total assets Current liabilities: Accounts payable Accrued liabilities Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ 26,700 $ 15,600 $11,100 26,500 25,300 1,200 79,900 91,900 (12,000) 35,500 102,900 11,000 24,500 90,700 12,200 $ 271,500 $234,500 $ 37,000 $ 35,600 $ 30,500 $5,100 28,900 30,600 (1,700) 77,000 103,000 (26,000) 88,200 64,300 23,900 41,800 6,100 35,700 $ 271,500 $234,500 $ 37,000 Revenues: ALL WIRED, INC. Income Statement Year Ended December 31, 2012 Sales revenue $ 438,000 Interest revenue 8,500 Total revenues 446,500 Expenses: Cost of goods sold $ 209,200 Salary expense 72,400 Depreciation expense 14,500 Other operating expense 10,000 Interest expense 21,500 Income tax expense 19,400 Total expenses 347,000 Net income $ 99,500 Additionally, All Wired purchased land of $24,500 by financing it 100% with long- term notes payable during 2012. During the year, there were no sales of land or equip- ment, no additional issuances of notes payable, no retirements of stock, and no treasury stock transactions.