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(SCF-Indirect Method and Balance Sheet) Ochoa Inc., had the following condensed balance sheet at the end of operations for 2011. During 2012, the following occurred.
(SCF-Indirect Method and Balance Sheet) Ochoa Inc., had the following condensed balance sheet at the end of operations for 2011. During 2012, the following occurred. A tract of land was purchased for $11,000. Bonds payable in the amount of $20,000 were retired at par. An additional $10,000 in common stock was issued at par. Dividends totaling $9,375 were paid to stockholders. Net income was $30,250 after deducting depreciation of $13,500. Land was purchased through the issuance of $22,500 in bonds. Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale. Both current assets (other than cash) and current liabilities remained at the same amount. Instructions Prepare a statement of cash flows for 2012 using the indirect method. Prepare the condensed balance sheet for Ochoa Inc. as it would appear at December 31, 2012
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