The comparative balance sheet of Contemporary Millworks, Inc., for December 31, 2008 and 2007, is shown at the top of the following page. The following additional information is taken from the records:

a. Land was sold for $13.

b. Equipment was acquired for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. There was a $30 credit to Retained Earnings for net income.

f. There was a $4 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

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Dec. 31, 2008 Dec. 31, 2007 Assets Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation- equipment 50 30 24 35 32 s 16 32 19 50 15 Total $162 126 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings 17 S 20 20 120 $162 2 10 94 126 Total