The 2012 and 2011 comparative balance sheets and 2012 income statement of Summer Time Supply Corp. follow:

Summer Time Supply had no non-cash investing and financing transactions during 2012. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.

Requirements
1. Prepare the 2012 statement of cash flows, formatting operating activities by using the indirect method.
2. How will what you learned in this problem help you evaluate aninvestment?

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Summer Time Supply Corp Comparative Balance Shects December 31, 2012 Increase 2011 (Decrease) Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses S67,200 1,900 65,300 9,700 1,200 5,000 (2,600) 54,700 45,000 52,200 53,400 2,400 Plant assets: Land Equipment, net 30,800 49,600 S279,800 $184,500 49,200 52,900 18,400 3.300 95,300 Total assets Current liabilities: Accounts payable Salary payable Other accrued liabilities S 35,500 26,900 8,600 10,900 22,100 23,700 (1,600) 24,000 13,100 Long-term liabilities: Notes payable 49,000 30,000 19,000 Stockholders' equity: Common stock, no-par Retained earnings 25,000 33,400 $279,800 $184,50095,300 89,000 60,200 64,000 26,800 Total liabilities and stockholders' equit Summer Time Supply Corp. Income Statement Year Ended December 31, 2012 Revenues: Sales revenue $441,000 Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense S185,500 76,700 16,100 50,000 24,100 28,500 Total expenses 380,900 S 60,100 Net income