The comparative balance sheet of Nelson Company, for 2006 and the preceding year ended December 31, 2005, appears below in condensed form:

Additional data for the current year are as follows:
(a) Net income, $71,800.
(b) Depreciation reported on income statement, $38,000.
(c) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.
(d) Bonds payable for $75,000 were retired by payment at their face amount.
(e) 2,500 shares of common stock were issued at $30 for cash.
(f) Cash dividends declared and paid $40,000.
(g) Investments of $100,000 were sold for $125,000.

Prepare a statement of cash flows using the indirectmethod

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ear Year 2,005 42,500 70,200 S 121,000 S 105.000 S 100,000 S 515,000 S 425,000 (175,000) S 612,000 S 567,700 2,006 S 68,000 S 61,000 S as Accounts receivable (net) Inventories Investments Equipment Accumulated depreciation-equipment S (153,000) S Accounts payable Bonds payable, due 2010 Common stock, S20 par Premium on common stock Retained earnings 47,250 75,000 S 375,000 S 325,000 25,000 95,450 S 612,000 S 567,700 59,750S 50,000 S S 127,250 S