The financial statements of Meenan Company appear below:

MEENAN COMPANY

Comparative Balance Sheet

December 31

20102009

Assets

Cash$38,000$23,000

Accounts receivable26,00034,000

Merchandise inventory30,00015,000

Property, plant, and equipment50,00078,000

Accumulated depreciation(20,000)(24,000)

Total$124,000$126,000

Liabilities and Stockholders' Equity

Accounts payable$17,000$23,000

Income taxes payable13,0008,000

Bonds payable7,00033,000

Common stock41,00024,000

Retained earnings46,00038,000

Total$124,000$126,000

MEENAN COMPANY

Income Statement

For the Year Ended December 31, 2010

Sales$400,000

Cost of goods sold280,000

Gross profit120,000

Operating expenses46,000

Income from operations74,000

Interest expense4,000

Income before income taxes70,000

Income tax expense21,000

Net income$49,000

The following additional data were provided:

1.Dividends declared and paid were $41,000.

2.During the year, equipment was sold for $15,000 cash. This equipment cost $28,000 originally and had a book value of $15,000 at the time of sale.

3.All depreciation expense is in the operating expenses.

4.All sales and purchases are on account.

5.Accounts payable pertain to merchandise suppliers.

6.All operating expenses except for depreciation were paid in cash.

Instructions

Prepare a statement of cash flows for Meenan Company using the indirect method