Use the information below and on the next page to prepare a statement of cash flows using the indirect method.

Additional information:
1. Operating expenses include depreciation expense of $33,000.
2. Equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash.
3. Land was sold at its book value for cash.
4. Interest expense of $12,000 was paid in cash.
5. Equipment with a cost of $166,000 was purchased for cash.
6. Bonds of $10,000 were redeemed at their face value for cash.
7. Common stock ($1 par) of $130,000 was issued for cash.
8. Cash dividends of $55,000 were declared and paid in 2014.
9. Common stock of $30,000 was issued in exchange for land.

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Assets Cash Accounts receivable Inventory Prepaid expenses Land Reynolds Company Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals 2014 $ 54,000 68,000 54,000 4,000 75,000 200,000 (21,000) 193,000 (28,000) $599,000 $ 23,000 10,000 140,000 220,000 206,000 $599,000 2013 $ 37,000 26,000 -0- 6,000 70,000 200,000 (11,000) 68,000 (10,000) $386,000 $ 40,000 -0- 150,000 60,000 136,000 $386,000 Change Increase/Decrease $ 17,000 Increase 42,000 Increase 54,000 Increase 2,000 Decrease 5,000 Increase -0- 10,000 Increase 125,000 Increase 18,000 Increase $ 17,000 Decrease 10,000 Increase 10,000 Decrease 160,000 Increase 70,000 Increase