JEM Company's comparative balance sheets for 1999 and 2000 are provided.

The following additional information is available:

a. Net income for the year 2000 (as reported on the income statement) was $\$ 50,000$.

b. Dividends of $\$ 40,000$ were declared and paid.

c. Equipment that cost $\$ 8,000$ and had a book value of $\$ 1,000$ was sold during the year for $\$ 2,500$.
Required: Based on the information provided, prepare a statement of cash flows for JEM Company for the year ended December 31,2000 . Use the indirect method to report cash flows from operating activities.

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Cash and cash equivalents Accounts receivable (net) Inventory Equipment JEM Company Comparative Balance Sheets December 31, 2000 and 1999 Assets Accumulated depreciation-equipment. 2000 1999 $ 30,500 64,500 $ 10,000 51,000 100,000 115,000 55,000 30,000 (21,500) (14,000) $228,500 $192,000 Total assets...... Liabilities and Stockholders' Equity Accounts payable. Long-term notes payable.. $ 52,500 70,000 $ 46,000 50,000 Capital stock... 60,000 60,000 Retained earnings. 46,000 36,000 Total liabilities and stockholders' equity. $228,500 $192,000