Question 7 Not complete Marked out of 1.11 Flag question Preparing a Statement of Cash Flows-Indirect Method Denton Corporation's balance sheet accounts as of December 31 of the current and prior year, and information relating to current year activities, are presented below. Balance Sheets, December 31 Assets Cash Short-term investments Accounts receivable (net) Inventory Long-term investments Plant assets Accumulated depreciation Patent Total assets Liabilities and Stockholders' Equity Accounts payable and accrued liabilities Short-term debt to financial institutions Common stock, $10 par Additional paid-in capital Retained Earnings Total liabilities and stockholders' equity Current Year Prior Year $184,000 240,000 $80,000 408,000 408,000 544,000 480,000 160,000 240,000 1,360,000 800,000 (360,000) (360,000) 72,000 80,000 $2,608,000 $1,728,000 $660,000 $576,000 260,000 640,000 560,000 296,000 200,000 752,000 392,000 $2,608,000 $1,728,000 Information relating to current year activities 1. Net income for the current year was $552,000. 2. Cash dividends of $192,000 were declared and paid during the year. 3. Plant assets costing $320,000 and having a carrying amount of $120,000 was sold this year for $120,000. 4. A long-term investment was sold for $108,000 cash. There were no other transactions affecting long-term investments during the year. 5.8,000 shares of common stock were issued for $22 per share. 6. Short-term investments consist of Treasury bills maturing on June 30 of the next year and are reported at fair value. Assume no change in fair value from the date of purchase has occurred. Prepare the statement of cash flows for the current year ended December 31, assuming the indirect method is used in presenting cash flows from operating activities. Note: Indicate a subtraction in the cash flow statement with a negative sign with the amount.