Presented below are the comparative statements of financial position for Vernet Company at December 31.

Vernet Company
Comparative Statements of Financial Position
December 31

Equity and Liabilities

Additional information:
1. Operating expenses include depreciation expense $57,000 and charges from prepaid expenses of $4,400.

2. Land was sold for cash at cost for $35,000
3. Cash dividends of $82,940 were paid.
4. Net income for 2014 was $50,000.
5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $31,000 was sold for $37,000 cash.
6. Issued 25,000 ordinary shares with a $1 par value for land with a fair value of $25,000.

Instructions
Cash from operations $75,400 Prepare a statement of cash flows for 2014 using the indirect method.

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2014 Assets 2013 $140,000 $150,000 175,000 (42,000) 250,000 (50,000) 16,540 140,000 64,000 57,000 Land Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable 215,000 (70,000) 250,000 (70,000) 12,140 170,000 77,000 41,460 Cash $765,600 $760,540 Total Share capital-ordinary, $1 par Retained earnings Bonds payable Accounts payable Total $275,000 167,600 $250,000 200,540 265,000 58,000 265,000 45,000 $765,600 $760,540