Selected Comparative Balance Sheet Accounts 12/31/2012 12/31/2011 Cash Accounts Receivable Inventory Prepaid Expenses Property, Plant & Equipment Accumulated Depreciation Accounts Payable Accrued Payables Note Payable Common Stock PIC-in excess of PV-CS Retained Earnings 44,500 12,000 24,000 4,000 90,000 (36,000) (9,000) (4,000) 0 (30,000) (10,000) (85,500) 5,000 14,000 21,000 1,500 70,000 (30,000) (4,000) (2,500) (20,000) (20,000) (5,000) (30,000) Lilly Corp Income Statement For the year ended 12/31/12 Sales Cost of goods sold Operating expenses Depreciation expense Loss on sale of PPE Net Income 200,000 (70,000) (60,000) (10,000) (2,500) 57,500 Lilly Corp. Statement of Retained Earnings For the year ended 12/31/12 Beginning retained earnings, 1/1/12 Add: Net Income Less: Dividends Ending retained earnings, 12/31/12 30,000 57,500 -2,000 85,500 Additional information: Lilly Corp purchased $40,000 of PPE in 2012 Instructions: Prepare a statement of cash flows for 2012 using the direct method