The comparative balance sheets for Spicer Company as of December 31 are presented below. Spicer Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 68,000 $ 45,000 Accounts receivable 50,000 58,000 Inventory 151,450 142,000 Prepaid expenses 15,280 21,000 Land 145,000 130,000 Buildings 200,000 200,000 Accumulated depreciationbuildings (60,000 ) (40,000 ) Equipment 225,000 155,000 Accumulated depreciationequipment (45,000 ) (35,000 ) Total $749,730 $676,000 Liabilities and Stockholders Equity Accounts payable $ 44,730 $ 36,000 Bonds payable 300,000 300,000 Common stock, $1 par 200,000 160,000 Retained earnings 205,000 180,000 Total $749,730 $676,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 ($20,000 of depreciation expense for buildings and $22,000 for equipment). 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were paid. 4. Net income for 2017 was $37,000. 5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Spicer Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities | Net Income 37000 Adjustments to reconcile net income to Cash Flows from Financing Activities Depreciation Expense # 42000 Loss on Disposal of Plant Assets 2000 Decrease in Accounts Receivable 8000 Increase in Inventory -9450 Increase in Inventory -9450 Decrease in Prepaid Expenses 5720 Increase in Accounts Payable 57000 94000 Net Cash Provided by Operating Activities A Cash Flows from Investing Activities Sale of Land 25000 Purchase of Equipment -92000 8000 Sale of Equipment Net Cash used by Investing Activities 1-59000 Cash Flows from Financing Activities - Payment of Cash Dividends | -12000 Net Increase in Cash 23000 45000 Cash at Beginning of Period Cash at End of Period 68000 Noncash Investing and Financing Activities Loss on Disposal of Plant Assets - 12000