Presented below is information related to the operations of Phantom Corporation.

December

2015 2014

Cash $125,000 $ 80,000

Accounts receivable 110,000 94,000

Inventory 60,000 43,000

Prepaid expenses 30,000 42,000

Land 70,000 40,000

Buildings 200,000 200,000

Accumulated depreciation

buildings (34,000) (16,000)

Equipment 116,000 160,000

Accumulated depreciation

equipment (30,000) (40,000)

Total $647,000 $603,000

Accounts payable $ 80,000 $ 55,000

Bonds payable 0 200,000

Common stock 400,000 200,000

Retained earnings 167,000 148,000

Total $647,000 $603,000

Additional information:

(a) The net income in 2015 is $ 53,000 including $28,000 of depreciation expense.

(b) In 2015, Simpson declared and paid a cash dividend.

Hint: You need to calculate the dividend paid

(c) The company converted $200,000 of bonds into common stock.

(d) Equipment with a cost of $44,000 and a book value of $24,000 was sold for $17,000. Land costing $30,000 was also acquired for cash.

Required:

Prepare a statement of cash flows in proper form for 2015, using the indirect method.