The following balance sheets were taken from the records of Blalock Company:

Blalock Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

1		20X1	20X2
2	Assets
3	Cash	$150,000.00	$185,000.00
4	Accounts receivable	70,000.00	80,000.00
5	Investments	0.00	30,000.00
6	Plant and equipment	100,000.00	105,000.00
7	Accumulated depreciation	(30,000.00)	(32,000.00)
8	Land	20,000.00	30,000.00
9	Total assets	$310,000.00	$398,000.00
10	Liabilities and equity
11	Accounts payable	$40,000.00	$50,000.00
12	Bonds payable	60,000.00	0.00
13	Mortgage payable	0.00	50,000.00
14	Preferred stock	20,000.00	0.00
15	Common stock	100,000.00	160,000.00
16	Retained earnings	90,000.00	138,000.00
17	Total liabilities and equity	$310,000.00	$398,000.00

Additional transactions were as follows:

A.	Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000.
B.	Retired bonds at a price of $60,000 on December 31.
C.	Earned net income for the year of $68,000; paid cash dividends of $20,000.

Required:

Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.