Statement of cash flows (indirect method).The net changes in the balance sheet accounts of Keating Corporation for the year 2011 are shown below.

1. On January 2, 2011 short-term investments (classified as available-for-sale) costing $121,000 were sold for $155,000.
2. The company paid a cash dividend on February 1, 2011.
3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2011 and 2010, respectively.
4. Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2011.
5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was recorded by the parent.
6. At January 1, 2011, the cash balance was $166,000.

Instructions
Prepare a statement of cash flows (indirect method) for the year ended December 31, 2011. Keating Corporation has no securities which are classified as cashequivalents.

Account Cash Short-tem investments Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Investment in subsidiary (equity method) Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, S10 par Additional paid-in capital Retained eamings & acirc; Appropriation for bonded indebtedness Retained eamings & acirc; Unappropriate Debit Credit $ 82,000 83,200 74,200 S121.000 13,300 17,800 20,000 210,000 80,700 15,500 130,000 21,500 80.000 90.000 150,000 60.000 38,000 643.600 Totals An analysis of the Retained Eamings & acirc; Unappropriated account follows Retained earmings unappropriated, December 31, 2010 Add: Net income Transfer from appropriation for bonded indebtedness Total Deduct: Cash dividends Stock dividend Retained earnings unappropriated, December 31, 2011 643.600 S1,300,000 327,000 60.000 $1.687,000 $185,000 240.000 425,000 $1,262,000