The net changes in the balance sheet accounts of Lenon, Inc. for the year 2011 are shown below: Account Debit Credit Cash $ 125,600 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) 60,000 Common stock ($10 par) 156,000 Additional paid-in capital-common 223,200 Retained earnings 87.200 $1.705.200 $1.705,200 Additional information: Income Statement Data for Year Ended December 31, 2011 Income before extraordinary item $272,000 Extraordinary loss: Condemnation of land 132.000 Net income S140.000 (Tip: don't get hung up on the "extraordinary"; just treat as if additional information.) 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 $480,000 and had a book value of $300,000 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 Depreciation Machinery 40,000 Machinery 60,000 Cash 140,000 6. A fully depreciated copier machine which cost $28,000 was written off. Preferred stock of $60,000 par value was redeemed for $80,000. 8. The company sold 12,000 shares of its common stock (S10 par) on June 15, 2011 for $25 a share. There were 87,600 shares outstanding on December 31, 2011. 9. Bonds were sold at 104 on December 31, 2011. 10. Land that was condemned had a book value of $240,000. Instructions Prepare the operating section of a statement of cash flows (indirect method). Ignore tax effects. For those of you who want to tie it all out, the Net cash used by investing activities was (1,112,000) Net cash provided by financing activities 1.052.000