The comparative balance sheet for Waterfall Travel Services, Inc., for December 31, 2012 and 2011, is as follows:

The following information is taken from the records of Waterfall Travel Services, Inc.:
a. Land was sold for $9,700.
b. Equipment was purchased for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. Net income for 2012 was $39,000.
f. Cash dividends paid during the year were $12,000.
Waterfall Travel Services, Inc., uses the indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for 2012.

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Waterfall Travel Services, Inc. Balance Sheets As of December 31, 2012 and 2011 Assets Accounts receivable (net) Prepaid insurance Accumulated de Liabilities and Stockholders' equity Wages payable taxes payable Note payable (long-term) $178,000 $161,000 Total stockholders' equity Total liabilities and stockholders' equity $173,000 $133,000