The comparative balance sheet of TorMax Technology, Inc. at December 31, 2010 and
2009, is as follows:

An examination of the income statement and the accounting records revealed the following additional information applicable to 2010:
a. Net income, $184,150.
b. Depreciation expense reported on the income statement: buildings, $18,450; machinery and equipment, $8,100.
c. Patent amortization reported on the income statement, $5,000.
d. A building was constructed for $207,000.
e. A mortgage note for $80,000 was issued for cash.
f. 5,000 shares of common stock were issued at $28 in exchange for the bonds payable.
g. Cash dividends declared, $46,800.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

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Dec. 31, 2010 Dec. 31, 2009 Assets $ 158,300 237,600 317,100 11,300 $ 128,900 Cash Accounts receivable (net). 211,500 365,200 9,000 108,000 405,000 (148,050) 279,000 (68,400) 43,200 Inventories Prepaid expenses Land 108,000 612,000 (166,500) 279,000 (76,500) 38,200 $1,518,500 Buildings Accumulated depreciation-buildings Machinery and equipment.. Accumulated depreciation-machinery & equipment Patents $1,333,350 Liabilities and Stockholders' Equity $ 299,100 11,700 28,200 80,000 $ 331,100 9,000 31,100 Accounts payable (merchandise creditors) .. Dividends payable.. Salaries payable Mortgage note payable, due 2017 Bonds payable Common stock, $1 par.. Paid-in capital in excess of par-common stock Retained earnings 140,000 18,000 45,000 759,150 23,000 180,000 896,500 $1,518,500 $1,333,350