Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December 2004, based on the following comparative balance sheets.

*Net income for the year ended December 31, 2004, totaled $8.3 million; dividends paid during the same period totaled $3.5 million; $2.0 million of long-term debt was retired in 2004; and fixed assets were sold during 2004 for $1.0million.

Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars) December 3 2003 December 31 2004 ASSETS Current assets: Cash Accounts receivable, net Inventories Total current assets $ 4.9 7.2 13.8 $25.9 $80.7 16.3 64.4 $90.3 $0.8 7.5 14.5 $ 22.8 $15.0 25.8 $ 89.2 Property and equipment Less Accumulated depreciation Net property and equipment Total assets 112 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable Other current liabilities Total current liabilities $8.0 6.0 $140 18.8 $9.5 8.2 Long-term debt Deferred federal income taxes Stockholders' equity: 31.8 $3.0 29.0 Common stock Additional paid-in capital Retained earnings Total stockholders equity $3.0 29.0 $56.3 $61.1 112.0 Total liabilities and stockholders' equity $903