The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2012 and 2011, with a column showing the increase (decrease) from 2011 to 2012.

Additional information:1. On December 31, 2011, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2012. No dividend was paid on Myers's common stock during the year.2. During 2012, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2012.3. On January 2, 2012, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash.4. On December 31, 2012, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2013.5. Net income for 2012 was $370,000.6. Sullivan declared and paid cash dividends for 2012 and 2011 as shown on the next page.

InstructionsPrepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2012, using the indirect method.

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COMPARATIVE BALANCE SHEETS Increase (Decrease) 2012 2011 $ 815,000 $ 700,000 $115,000 (40,000) 135,000 340,000 (125,000) 35,000 250,000 Cash Accounts receivable 1,128,000 1,850,000 3,307,000 (1,165,000) 310,000 1,168,000 1,715,000 2,967,000 (1,040,000) 275,000 Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable 250,000 $6,495,000 $5,785,000 $710,000 Total assets $ 955,000 50,000 100,000 $ 60,000 (20,000) (20,000) 400,000 Accounts payable Income taxes payable Dividends payable Capital lease obligation Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings $1,015,000 30,000 80,000 400,000 500,000 500,000 1,500,000 2,970,000 1,500,000 2,680,000 290,000 Total liabilities and stockholders' equity $6,495,000 $710,000 $5,785,000