Using the information given in Exercise 5-23, prepare a statement of cash flows for 2002 for LaForge Company using the direct method.

Exercise 5-23:

The following are financial statements for LaForge Company.

The following information is also available for 2002:

(a) Plant assets were sold for their book value of \($200\) during the year. The assets had an original cost of \($330\).

(b) Cash dividends totaling \($75\) were paid during the year.

(c) All accounts payable relate to inventory purchases.

(d) All purchases of plant assets were cash transactions.

Prepare a statement of cash flows for 2002 using the indirect method.

LaForge Company Comparative Balance Sheet December 31, 2002 and 2001 (Dollars in thousands) Assets Cash Accounts receivable. Inventory Prepaid general expenses Plant assets. Accumulated depreciation-plant assets. Total assets Accounts payable.. Interest payable... Income taxes payable.. Bonds payable. 2002 2001 $ 22 $ 16 200 250 125 95 18 10 1,019 1,000 (527) (597) $ 857 $ 774 Liabilities and Stockholders' Equity $ 75 $ 50 10 8 90 107 117 77 338 300 227 232 $ 857 $ 774 Common stock Retained earnings. Total liabilities and stockholders' equity