Berclay Tile Company reported net income of $6,160 for 2008 but has been showing an overdraft in its bank account in recent months. The manager has contacted you as the auditor for an explanation. The comparative balance sheet was given to you for examination, along with the following information.
(a) Equipment was sold for $1,500, its cost was $2,500, and its book value was $500. The gain was reported as Other Revenue.
(b) Cash dividends of $4,500 were paid.

Instructions:
Prepare a statement of cash flows using the indirectmethod.

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Berclay Tile Company Comparative Balance Sheet Dec. 31, 2008 Dec. 31, 2007 equipment $ 25,000 0,000 (15,000) 37.250 (22,500) 30.850 Total land buildings and equipment. Notes payable-current portion Total current liabilities... 0,500 17,500 6,810 15,000 5,150 0 Total liabilities and stockholders' equity