Problem 12 The operations of the Molehill, a small lodging operation, are becoming more complex Susan Strat, the owner, has asked for your help in preparing her statement of cash flows. She is able to present you with condensed balance sheets and some additional information. The Molehill Condensed Balance Sheets December 31, 20X1 and 20X2 20X1 20X2 Cash Accounts Receivable $ 10,000 26,500 10,000 200,000 (20,000) $226,500 $ 8,000 22,500 20,000 320,000 (59,000) 00R 2 Investments Equipment Accumulated Depreciation Total Assets $311,500 Current Liabilities: Accounts Payable $ 18,000 5,000 5,000 $ 21,000 22,000 8,000 Mortgage Payable (current) Dividends Payable Noncurrent Liabilities: 110,000 70,000 80,500 75,000 50,000 73,500 $226,500 Mortgage Payable Common Stock Retained Earnings $311,500 Total Liabilities and Owners' Equity Additional information: 1. Equipment costing $20,000 and fully depreciated (to $0) was sold for $5,000. 2 Long-term investments costing $10,000 were sold for $12,000. 3. Common stock was sold and long-term debt was borrowed during 20X2. There were no noncash financing investing activities during 20X2. or on the sale of equipment for 20X2 totaled $15,000. The firm's aver- 4. Income before gain age tax rate is 15 percent. paid on a timely basis. . Assume all current liabilities are 6. Assume all long-term debt is reclassified as a current liability year prior to its payment. on December 31 of 214 Chapter 4 7. Assume the change in retained earnings is due only to dividends declared and net income from opera tions. Dividends declared during 20X2 totaled $10,000. Required: Prepare the SCF using the indirect method