Additional information 1 . Slab , Inc , invested in Squib Designs , Inc . several years ago . The initial investment was 4090 of the outstanding common stock of Squib ; this percentage has remained constant throughout the years . During the current year Squib Designs , Inc . reported net income of $37 500 . In addition , Squib declared and paid dividends of $7 500 2 . The short -term marketable securities were purchased on January Ind of the current year at a cost of $120 000 , and were classified as available - for-sale . Dividends of $13 090 have been received in conjunction with these short term securities . The market value of these securities as of 12/31 of the current year is $1 10 000 3 . Bonds series A have a $109 090 face value , and were issued ( several years ago ) at a premium of $20 000 . " The bonds were retired on 12131 for a loss of S1 1 090 . At the time of retiremet their book value was $1 16 090 4 . During the year Slab sold for $14 090 old equipment that had cost $30 090 and had $16 090 accumulated depreciation as of the date of the sale . New equipment worth $50 ,000 was acquired in exchange for $50,000 of bonds series B 5 . A cash dividend of $20 090 was declared and paid this year 6 . All stock issuances were for cash Required : Prepare a cash flow statement for the year in question . Use the indirect approach