The comparative balance sheets for Ramirez Company as of December 31 are presented on the next page.

Additional information:1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720.2. Land was sold for cash at book value.3. Cash dividends of $15,000 were paid.4. Net income for 2010 was $37,000.5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash.6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock.InstructionsPrepare a statement of cash flows for the year ended December 31, 2010, using the indirectmethod.

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RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2010 2009 $ 71,000 $ 45,000 Cash Accounts receivable Inventory Prepaid expenses 44,000 62,000 142,000 151,450 15,280 105,000 21,000 Land 130,000 Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 228,000 155,000 (45,000) 200,000 (60,000) $709,730 (35,000) 200,000 (40,000) $680,000 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $ 47,730 $ 40,000 300,000 260,000 200,000 160,000 202,000 180,000 Total $709,730 $680,000