Financial statements for Warren Corp. are presented below. Prepare a cash flow statement for Warren. Present cash from operations in both a direct and indirect format.

Warren Corp.

Income Statement

Year Ended December 31, 2012

Revenue	$80,000
Interest Revenue	2,000
	82,000
Expenses
Cost of Goods Sold	34,000
Wage Expense	26,000
Interest Expense	8,000
Depreciation Expense	6,000
Gain on Sale of Building	(10,000)
Gain on Sale of Marketable Securities	(4,000)
Gain on Debt Retirement	(3,000)
Income Before Tax	25,000
Tax Expense	8,000
Net Income	$17,000

Other Information:

1. Accounts payable represent merchandise purchases only.

2. A building with a cost of $18,000 was acquired during 2012.

3. Available for Sale (AFS) marketable securities costing $7,000 were acquired during 2012.

4. On January 1, 2012, Warren retired one-half of its outstanding bonds payable. The retirement

Occurred before additional bonds were issued.

5. Bonds with a face value of $16,000 were issued for $13,000 during 2012.

6. Warren declared a 20% stock dividend when the price of its stock was $6 per share.

The stock dividend occurred before any shares of stock were issued during 2012.

Warren Corp.

Comparative Balance Sheets

December 31, 2011 and 2012

	2012	2011
Cash	$57,000	$23,000
Accounts Receivable	3,000	8,000
Inventory	27,000	6,000
Current Assets	87,000	37,000
Buildings and Equipment	42,000	30,000
Accumulated Depreciation	(12,000)	(10,000)
Marketable Securities - (AFS)	6,000	11,000
Assets	$123,000	$68,000
Accounts Payable	$37,000	$16,000
Bonds Payable	26,000	20,000
Discount	(6,000)	(8,000)
Deferred Tax Liability	10,000	13,000
Liabilities	67,000	41,000
Common Stock$1 par	14,000	10,000
Additional Paid-in Capital	31,000	6,000
Retained Earnings	18,000	16,000
Unrealized Decline in Mkt. Sec. (AFS)	(7,000)	(5,000)
Owners Equity	56,000	27,000
Liabilities and Equity	$123,000	$68,000