Prepare statement of cash flows using the indirect method. The income statement for 2012 and the balance sheets for 2012 and 2011 are presented for Gibson Industries, Inc.

Additional information follows:
a. Sold plant asset for $4,100. Original cost of this plant asset was $10,800 and it had
$9,200 of accumulated depreciation associated with it.
b. Paid $5,500 on the bonds payable; issued $47,500 of new bonds payable.
c. Declared and paid cash dividends of $15,200.
d. Purchased new investment for $20,000.
e. Purchased new equipment for $40,800.
Requirement
Prepare a statement of cash flows for Gibson Industries, Inc., for the year ended December 31, 2012, using the indirect method.

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Gibson Industries, Inc. Income Statement For Year Ended December 31, 2012 Sales revenue $958,000 386,000 $572,000 Cost of goods Gross pr Operating expenses: Salaries and wage expense Insurance expense Depreciation expense Other operating expenses $184,000 11,500 46,200 88,000 329,700 Operating income $242,300 Other income and expenses Gain on sale of equipment....05.100 s 2,60o 2,500 Interest expense Income before taxes Income tax expense Net i 239,700 71,910 $167,790 Gibson Industries, Inc. Balance Sheets As of December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash and cash equivalents Accounts receivable Inv Prepaid insurance $ 477,000 288,000 129,000 213,000 5,500 $ 889,500 635,500 595,000 (149,000) (112,000) 73,000 $1,458,500 $1,191,500 77,000 326,000 9,500 Total current assets Property, plant, and equipment Less: Accumulated depreciation Investments Total assets 625,000 93,000 Liabilitics Current liabilities: Accounts payable (inventory purchases) Salaries payable Interest payable Taxes paya Other accrued operating expenses S 59,000 39,000 17,400 800 13,000 3,000 73,200 23,000 96,200 16,100 1,500 62,910 6,100 Total current liabilities 145,61070 Bonds payable Total liabilities 65,000 210,610 Stockholders' equity Common stock Retained e Total stockholders' equity Total liabilities and equity 601,000 494,300 90 1,095,300 $1,458,500 $1,191,500 601,000 646,890 1,247,8