The comparative balance sheet for ENGRO Corporation is presented below:

ENGRO CORPORATION

Comparative Balance Sheet

2019 2018

Assets

Cash RS 36,000 RS 31,000

Accounts receivable (net) 70,000 60,000

Prepaid insurance 25,000 17,000

Land 18,000 40,000

Equipment 70,000 60,000

Accumulated depreciation (20,000) (13,000)

Total Assets RS 199,000 RS 195,000

Liabilities and Stockholders' Equity

Accounts payable RS 11,000 RS 6,000

Bonds payable 27,000 19,000

Common stock 140,000 115,000

Retained earnings 21,000 55,000

Total liabilities and stockholders' equity RS 199,000 RS 195,000

Additional information:

1. Net loss for 2019 is RS 20,000.

2. Cash dividends of RS 14,000 were declared and paid in 2019.

3. Land was sold for cash at a loss of RS 4,000. This was the only land transaction during the year.

4. Equipment with a cost of RS 15,000 and accumulated depreciation of RS 10,000 was sold for RS 5,000 cash.

5. RS 22,000 of bonds were retired during the year at carrying (book) value.

6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was

RS 25,000.

Instructions

Prepare a statement of cash flows for the year ended 2019 by using the Indirect method.