JEM Companys comparative balance sheets for 2002 and 2003 are provided. JEM Company Comparative Balance Sheets December

JEM Company’s comparative balance sheets for 2002 and 2003 are provided.

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JEM Company Comparative Balance Sheets December 31, 2003 and 2002 Assets 2003 2002 Cash and cash equivalents Accounts receivable (net) Inventory $ 30,500 $ 10,000 64,500 51,000 100,000 115,000 Equipment 55,000 30,000 Accumulated depreciation-equipment. (21,500) (14,000) Total assets. $228,500 $192,000 Liabilities and Stockholders' Equity Accounts payable $ 52,500 $ 46,000 Long-term notes payable 70,000 50,000 Capital stock. 60,000 60,000 Retained earnings. 46,000 36,000 Total liabilities and stockholders' equity. $228,500 $192,000 The following additional information is available: a. Net income for the year 2003 (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 y $2,500. year for Based on the information provided, prepare a statement of cash flows for JEM Company for year ended December 31, 2003. Use the indirect method to report cash flows from operat- the ing activities.