The comparative balance sheets for Spicer Company as of December 31 are as follows.

Additional information:
1. Operating expenses include depreciation expense of \(\$ 42,000(\$ 20,000\) of depreciation expense for buildings and \(\$ 22,000\) for equipment).
2. Land was sold for cash at book value.
3. Cash dividends of \(\$ 12,000\) were declared and paid.
4. Net income for 2025 was \(\$ 37,000\).
5. Equipment was purchased for \(\$ 92,000\) cash. In addition, equipment costing \(\$ 22,000\) with a book value of \(\$ 10,000\) was sold for \(\$ 8,000\) cash.
6. 40,000 shares of \(\$ 1\) par value common stock were issued in exchange for land with a fair value of \(\$ 40,000\).

Instructions

Prepare a statement of cash flows for the year ended December 31, 2025, using the indirect method.

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Assets Cash Accounts receivable Inventory Prepaid expenses Land Spicer Company Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total 2025 $ 68,000 50,000 151,450 15,280 145,000 200,000 (60,000) 225,000 (45,000) $749,730 $ 44,730 300,000 200,000 205,000 $749,730 2024 $ 45,000 58,000 142,000 21,000 130,000 200,000 (40,000) 155,000 (35,000) $676,000 $ 36,000 300,000 160,000 180,000 $676,000