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The comparative balance sheet of Freeman Company, for the current year and the preceding year ended December 31, appears below in condensed form: Current Preceding

The comparative balance sheet of Freeman Company, for the current year and the preceding year ended December 31, appears below in condensed form:

Current Preceding

Year Year

-------- ---------

Cash $ 24,900 $ 27,400

Accounts receivable (net) 113,100 94,600

Inventories 194,000 176,500

Prepaid expenses 3,400 4,000

Land 60,000 80,000

Buildings 265,000 155,000

Accumulated depreciation buildings (55,800) (43,500)

Equipment 195,600 185,600

Accumulated depreciation - equipment. (71,500) (74,500)

$728,700 $605,100

======== ========

Accounts payable $ 140,000 $ 143,700

Income tax payable 4,000 3,800

Bonds payable 50,000 --------

Common stock, $1 par 26,000 25,000

Paid-in capital in excess of parcom. stock 350,000 280,000

Retained earnings 158,700 152,600

$728,700 $605,100

======== ========

Additional data for the current year are as follows:

(a) Net income, $12,100.

(b) Depreciation reported on income statement, $39,300.

(c) Fully depreciated equipment costing $30,000 was scrapped, no salvage, and

equipment was purchased for $40,000.

(d) A building was acquired for $110,000

(d) Issued $50,000 of bonds for cash.

(e) 1,000 shares of common stock were issued at $71 for cash.

(f) Cash dividends declared and paid, $6,000.

(g) Land costing $20,000 was sold for $34,000.

Prepare a statement of cash flows using the indirect method.

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