JEM Company's comparative balance sheets for 2011 and 2012 are provided.

The following additional information is available:
a. Net income for the year 2012 (as reported on the income statement) was $70,000.
b. Dividends of $40,000 were declared and paid.
c. Equipment that cost $24,000 and had a book value of $4,000 was sold during the year for $7,000.
Required:
Based on the information provided, prepare a statement of cash flows for JEM for the year ended December 31, 2012. Use the indirect method to report cash flows from operatingactivities.

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JEM Company Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets S 52,000 78,000 125,000 72,000 (34,000) $293,000 $ 15,000 65,000 150,000 40,000 (22,000) S248,000 Cash and cash equivalents Accounts receivable (net) Inventory. Equipment. Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable. Long-term notes payable. Capital stock . Retained earnings. Total liabilities and stockholders' equity. S 60,000 90,000 85,000 58,000 $293,000 S 65,000 70,000 75,000 38,000 S248,000