The comparative balance sheet for Chelsea Company appears below:

Chelsea Company

Comparative Balance Sheet

Dec. 31, 2010 Dec. 31, 2009

Assets

Cash ............................................................................................ $51,000 $17,000

Accounts receivable ...................................................................... 6,000 8,000

Inventory ........................................................................................ 10,000 7,000

Prepaid expenses .......................................................................... 2,000 3,000

Building .......................................................................................... 30,000 15,000

Accumulated depreciation%u2014building ............................................. (3,000) (2,000)

Total assets .............................................................................. $96,000 $48,000

Liabilities and Stockholders' Equity

Accounts payable .......................................................................... $ 3,000 $ 5,000

Long-term note payable ................................................................. 12,000 13,000

Common stock .............................................................................. 38,000 18,000

Retained earnings .......................................................................... 43,000 12,000

Total liabilities and stockholders' equity ................................... $96,000 $48,000

The income statement for the year is as follows:

Chelsea Company

Income Statement

For the Year Ended December 31, 2010

Sales (all on credit) ........................................................................ $410,000

Expenses and losses

Cost of goods sold ................................................................... $252,000

Operating expenses, exclusive of depreciation....................... 94,300

Depreciation expense .............................................................. 1,000

Interest expense ...................................................................... 1,200

Loss on sale of land ................................................................. 2,500

Income taxes ........................................................................... 9,000

Total expenses and loss .................................................... 360,000

Net income .................................................................................... $ 50,000

Cash dividends of $19,000 were paid during the year. Land costing $20,000 was acquired by the issuance of common stock. The property was subsequently sold for $17,500 cash.

Instructions:

Prepare a statement of cash flows for the year ended December 31, 2010 using the indirect method.