The following items relate to the activities of Schmidt Company for 2011:
(a) Cash dividends declared and paid on common stock during the year totaled $90,000. In addition, on January 15, 2011, dividends of $25,000 that were declared in 2010 were paid.
(b) Retained earnings of $145,000 were appropriated during the year in anticipation of a major capital expansion in future years.
(c) Depreciation expense was $59,000.
(d) Equipment was purchased for $215,000 in cash.
(e) Early in the year, a 10% stock dividend was declared and distributed. This stock dividend resulted in the distribution of 40,000 new shares of $1 par common stock. The market value per share immediately after the stock dividend was $55.
(f) Cash revenues for the year totaled $582,000.
(g) Cash expenses for the year totaled $305,000.
(h) Old machinery was sold for its book value of $20,000.
(i) Near the end of the year, a 2-for-1 stock split was declared. The 440,000 shares of $1 par common stock outstanding at the time were exchanged for 880,000 shares with a par value of $0.50.
(j) Cash dividends totaling $27,000 were declared and paid on preferred stock.
(k) Land was acquired in exchange for 5,000 shares of $0.50 par value common stock. The land had a fair market value of $170,000.
(l) Assume no changes in current operating receivable and payable balances during the year.

Instructions:
Prepare a statement of cash flows for Schmidt Company for the year ended December 31, 2011. Use the indirect method for reporting cash flows from operating activities.