The Airport Shuttle Services Inn provides the following balance sheet, income statement and other information.

How to create a Statement of Cash Flows using the Indirect Method.

Airport Shuttle Services: Balance Sheets 12/31

20X1 20X2

ASSETS

Cash $ 34,000 $ 56,000

Accounts Receivable 30,000 20,000

Prepaid Expenses 0 4,000

Land 0 130,000

Building 0 160,000

Equipment 10,000 27,000

Accumulated Depreciation 0 (14,000)

Total Assets $ 74,000 $ 383,000

LIABILITIES AND EQUITIES

Accounts Payable $ 4,000 $ 59,000

Bonds Payable 0 130,000

Common Stock 50,000 50,000

Retained Earnings 20,000 144,000

Total Liabilities and Equities $ 74,000 $ 383,000

Airport Shuttle Services: Income Statement 12/31

Revenues $ 507,000

Operating Expenses $ 261,000

Depreciation Expenses 15,000

Loss on Sale of Equipment 3,000

Total Expenses 279,000

Operating Income 228,000

Income Taxes 89,000

Net Income $ 139,000

Airport Shuttle Services: Additional Information

1. The company declared and paid a $ 15,000 cash dividend.
2. The company obtained land through the issuance of $ 130,000 in long-term bonds.
3. A building costing $ 160,000 was purchased with cash.
4. Equipment costing $ 25,000 was purchased with cash.
5. The company sold equipment with a book value of $ 7,000 (cost was $ 8,000 with accumulated depreciation of $ 1,000) for cash of $ 4,000.