Problem: PREPARE A STATEMENT OF CASH FLOWS Based on the following data for Petra Co. for the year ending December 31, 2020 and the preceding year ended December 31, 2019, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that: Equipment costing $125,000 purchased for cash. Equipment costing $85,000 with accumulated depreciation of $65,000 sold for $15,000, resulting a loss of $5,000. The stock issued for cash. Net income for the year 2020 is $51,000. Depreciation for the year 2020 is $57,000 and loss from sale of equipment is $5,000. Cash dividends paid for 2020 is $12,000. Cash Accounts receivable (net) Inventories Equipment Accumulated depreciation Accounts payable (merchandise creditors) Cash dividends payable Common stock, $10 par Paid-in capital in excess of par-- common stock Retained earnings Year 2020 Year 2019 $100,000 $ 78,000 78,000 85,000 101.500 90,000 410,000 370,000 (150.000) (158.000) $539.500 $465.000 $ 58,500 $ 55,000 5,000 4,000 200,000 170,000 62,000 60,000 214.000 176.000 $539.500 $465.000