The net changes in the balance sheet accounts of Eusey, Inc. for the year 2011 are shown below: Account Debit Credit Cash $ 105600 Accounts receivable $ 64,000 Allowance for doubtful accounts 14,000 Inventory 217,200 Prepaid expenses 20,000 Long-term investments 144,000 Land 300,000 Buildings 600,000 Machinery 100,000 Office equipment 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Office equipment 12,000 Accounts payable 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Premium on bonds 32,000 Bonds payable 800,000 Preferred stock ($50 par) 80,000 Common stock ($10 par) 156,000 Additional paid-in capitalcommon 223,200 Retained earnings 87,200 Additional information: 1. Net income $140,000 2. Cash dividends of $128,000 were declared December 15, 2011, payable January 15, 2012. A 5% stock dividend was issued March 31, 2011, when the market value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $460,000 and had a book value of $280,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The following entry was made to record an exchange of an old machine for a new one: Machinery 160,000 Accumulated DepreciationMachinery 40,000 Machinery 60,000 Cash 140,000 6. A fully depreciated copier machine which cost $28,000 was written off. 7. Preferred stock of $60,000 par value was redeemed for $60,000. Problem 1 Continued 8. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2011 for $25 a share. There were 87,600 shares outstanding on December 31, 2011. 9. Bonds were sold for $832,000 on December 31, 2011. 10. Insurance proceeds of $108,000 were received for land that was condemned with a book value of $240,000. Prepare statement of cash flows (indirect Method). Ignore tax effects