Richmoon Corporation has the following comparative financial statements:

Richmoon Corporation
Income Statement
For the Year Ended December 31, 2010
Sales ...........$ 33,000
Less: Cost of goods sold .....(19,500)
Gross margin .......$ 13,500
Less: Operating expenses ...(6,500)
Net income .........$ 7,000
Dividends of $1,900 were paid. No equipment was purchased or retired during the current year.

Required:
Prepare a statement of cash flows by using the indirectmethod.

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Richmoon Corporation Comparative Balance Sheets December 31, 2009 and 2010 2009 2010 Assets Cash Accoun Inventory Plant and equipment Accumula ted depreciation 5,500 15,000 3,000 20,000 9,000 12,000 6,000 20,000 ts receivable, net Total a ssets Liabilities and equity Accounts payable Common stock Retained earnings $39,500 $42,000 6,400 21,200 11,900 $39,500 2,000 23,000 17,000 $42,000 Total liabilites and equity