Presented below are data taken from the records of Morgenstern Company. Additional information:

1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2009, were sold in 2010 for $34,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.

2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2010 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.

3. Net income as reported on the income statement for the year was $59,000.

4. Dividends paid amounted to $10,000.

5. Depreciation charged for the year was $28,000. Prepare a statement of cash flows for the year 2010 using the indirectmethod.

Cash Current assets other than cash Long-term investments Plant assets Accumulated depreciation Current liabilities Bonds payable Capital stock Retained earnings December 31, 2010 $ 15,000 85,000 10,000 335,000 $445,000 $ 20,000 40,000 75,000 254,000 56,000 $445,000 December 31, 2009 $ 10,000 58,000 53,000 215,000 $336,000 $ 40,000 22,000 -0- 254,000 20,000 $336,000