WELLER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total 2010 $ 35,000 33,000 27,000 60,000 (29,000) $126,000 2009 $ 20,000 14,000 20.000 78,000 (24,000) $108,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 29,000 7,000 27,000 18,000 45,000 $126,000 $ 15,000 8,000 33,000 14,000 38,000 $108,000 WELLER COMPANY Income Statement For the Year Ended December 31, 2010 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $242,000 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $ 32,000 Additional data: 1. Dividends declared and paid were $25,000. 2. During the year equipment was sold for $8.500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense, $14,500, is in the operating expenses. 4. All sales and purchases are on account. Instructions (a) Prepare a statement of cash flows using the indirect method