The 2012 and 2011 balance sheets of West Corporation follow. The 2012 income statement is also provided. West had no noncash investing and financing transactions during 2012. During the year, West sold equipment for $15,100, which had originally cost $12,700 and had a book value of $10,700. West did not issue any notes payable during the year but did issue common stock for $30,000.
Requirements
1. Prepare the statement of cash flows for West Corporation for 2012 using the indirect method.
2. Evaluate West's cash flows for the year. Discuss each of the categories of cash flows in your response.

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West Corporation Income Statement As of December 31, 2012 Sales revenue $347,000 78,000 $269,000 Cost of goods Gross pr Operating expenses: Salaries and wage expense Depreciation expense Other operating expenses $26,500 4,900 12,500 43,900 Operating income $225,100 Other income and expenses Gain on sale of equipmen.. $ 4,400 Interest expense Income before taxes Income tax expense Net i 5,500 $219,600 36,600 $183,000 9,900 West Corporation Balance Sheets For Years Ended December 31, 2012 and 2011 2012 2011 Assets Current assets: Cash and cash equivalents Accounts receivable Inv Prepaid insurance S0,000 23,500 32,100 29,100 86,000 93,300 3,300 Total current assets $171,400 $148,700 153,000 136,000 (30,000) (27,100) Property, plant, and equipment Less: Accumulated depreciation Investments Total assets 113,000 $407,400 $257,600 Liabilities Current liabilities: Accounts payable (inventory purchases) Salaries payable Interest payab Taxes paya Other accrued operating expenses S 33,200 36,500 7,400 2,900 2,400 5,300 18,800 22,100 S62,600 $66,000 78.000 113,000 $140,600 $179,000 Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock Retained e Total stockholders' equity Total liabilities and equity $107,000 77,000 1,600 $266,800 78,600 $407,400 $257,600 159.800