Prepare a statement of cash flow (direct method). Include a reconciliation of net income to cash flow from operations for the year ended December 31, 2012 During 2012, ABC Corporation paid $263 in cash towards new plant assets. They also financed an extra $55 in plant asset acquisitions. They borrowed this by issuing a N/P. Therefore, capital expenditures are $318. ABC sold plant assets for their book value in a cash transaction. ABC did not repay any debt during the current year. All dividends declared were cash dividends. Thank you in advance. ABC Corporation Income Statement For the Year Ended December 31, 2012 Sales $1,250 Cost of Goods Sold $950 Gross Profit S300 Operating Expenses: Selling General and Administrative Expense Depreciation Expense 55 $130 Operating Income: S170 Interest Expense Interest revenue 50 $25 Profit before Tax S145 Income Tax Expense S53 Net Profit ABC Corporation Balance Sheet December 31, 2012 and 2011 Assets 2012 2011 Cash $150 $212 Accounts Receivable 238 175 Inventory 750 300 Prepaid Expenses 350 225 Plant Assets 485 638 Accumulated Depreciation 248) K250) Total Assets $1725 S1300 Liabilities and Stockholders' Equity Accounts Payable $132 S125 Taxes Payable Long-term Debt 555 Common Stock 750 Retained Earnings Total Liabilities and Stockholders' Equity 1300 $92 163 1725