cash flow statements:

a) direct method

b) indirect method

The comparte balance sheets Cash Accounts receivable Prepaid insurance Inventory Long-term investments Equipment Accumulated depreciation equipment Total assets 30.000 12.000 10.000 32.000 13000 14.000 9.000 15.000 18.000 30,000 (14,000 585.000 17 000 2.000) 1.000 17.000 (18.000) 30.000 (8,000) 50,000 22.000) $122.000 Liabilities and Stockholders Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 25,000 35,000 42,000 20.000 $122.000 7,000 45,000 23,000 10.000 $85.000 18,000 (10,000) 19,000 10,000 Income Statement Sales Revenue COGS Operating Exp (Excluding Depreciation Exp) Depreciation Exp Loss on sale of Long-term Investment 86,000 40,000 7,000 8,000 5.000 Net Income 26.000 Additional information: 1. Long-term investments that had a book value of $18,000 were sold for $13,000. The loss is $5,000. 2. Cash dividends of $16,000 were declared and paid during the year. 3. Equipment purchase during 2012 was $30,000, paid all in cash. 4. Bonds retired and paid off during 2012 were $10,000