Oxident Products is the manufacturer of a vitamin supplement. The changes that have taken place on the company?s balance sheet accounts as a result of the past year?s activities follow:

The following additional information is available about last year?s activities:

a. The company sold equipment during the year for $40,000. The equipment had cost the company $100,000 when purchased, and it had $70,000 in accumulated depreciation at the time of sale.

b. Net income for the year was $?.

c. The balance in the cash account at the beginning of the year was $52,000; the balance at the end of the year was $?.

d. The company declared and paid $30,000 in cash dividends during the year.

e. Long-term investments that had cost $120,000 were sold during the year for $80,000.

f. The balances in the plant and equipment and accumulated depreciation accounts for the past year follow:

g. If data are not given explaining the change in an account, make the most reasonable assumption about the cause of the change.

Required:

Using the indirect method, prepare a cash flow statement for the past year. Show all computations for items that appear on your statement.

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Net Increase (Decrease) Debit Balance Accounts $ (10,000) Cash Accounts receivable (81,000) 230,000 Inventory Prepaid expenses (6,000) Long-term loans to subsidiaries 100,000 Long-term investments (120,000) Plant and equipment 500,000 Net increase $ 613,000 Credit Balance Accounts Accumulated depreciation $ 90,000 Accounts payable (70,000) Accrued liabilities 35,000 Bonds payable 400,000 Deferred income taxes 8,000 Preferred shares (180,000) Common shares 270,000 Retained earnings 60,000 Net increase $ 613,000