The comparative statements of financial position for Amaral Reis Company as of December 31 are presented on the next page.

Amaral Reis Company
Comparative Statements of Financial Position
December 31

Equity and Liabilities

Additional information: 
1. Operating expenses include depreciation expense of R$40,000.
2. Land was sold for cash at book value of R$20,000.
3. Cash dividends of R$25,000 were paid.
4. Net income for 2014 was R$45,000.
5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a book value of R$12,000 was sold for R$6,000 cash.
6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,000.

Instructions 
Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.

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2013 Assets 2014 R$145,000 228,000 (45,000) 200,000 (60,000) 15,280 R$130,000 155,000 (35,000) 200,000 (40,000) 21,000 Land Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable Cash 154,550 44,000 59,520 142,000 62,000 45,000 R$680,000 Total R$741,350 Share capital-ordinary, R$1 par Retained earnings R$195,000 200,000 R$160,000 180,000 Bonds payable Accounts payable 300,000 46,350 R$741,350 300,000 40,000 Total R$680,000