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.

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