_{Please prepare a Statement of Cash Flows in Indirect Method.}

_{A Comparative Balance Sheet for Company X follows. Net Income was $50,000 and Cash Dividends of $20,000 were paid during the year. No Buildings and Equipment were sold during the year Land was sold at cost.}

Additional Information:

• Net Income was $50,000 and Cash Dividends of $20,000 were paid during the year.
• No Buildings and Equipment were sold during the year.
• Land was sold at cost.

Please prepare a Statement of Cash Flows for the year ended December 31, using the Indirect Method to present Cash Flows from operating activities.

\begin{tabular}{|l|r|r|} \hline \multicolumn{1}{c}{ Comparative Balance Sheet } \\ \multicolumn{1}{|c|}{ Prior Year } & \multicolumn{1}{c|}{ Year } \\ \hline Assets & & \\ \hline Cash & $40,000 & $76,000 \\ \hline Accounts receivable & 300,000 & 340,000 \\ \hline Inventory & 400,000 & 460,000 \\ \hline Land & 170,000 & 140,000 \\ \hline Building and equipment & 350,000 & 400,000 \\ \hline Accumulated depreciation & (130,000) & (160,000) \\ \hline Total assets & $1,130,000 & $1,256,000 \\ \hline Liabilities and Stockholders' Equity & & \\ \hline Accounts payable & $150,000 & $180,000 \\ \hline Income taxes payable & 84,000 & 60,000 \\ \hline Notes payable (long-term) & 160,000 & 200,000 \\ \hline Preferred stock & 150,000 & 150,000 \\ \hline Common stock (no-par) & 350,000 & 400,000 \\ \hline Retained earnings & 236,000 & 266,000 \\ \hline Total liabilities and stockholders' equity & $1,130,000 & $1,256,000 \\ \hline \hline \end{tabular}