The comparative balance sheets for Vanco Company as of December 31 are presented below.

Additional information:1. Operating expenses include depreciation expense of $42,000.2. Land was sold for cash at book value.3. Cash dividends of $12,000 were paid.4. Net income for 2012 was $37,000.5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash.6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.InstructionsPrepare a statement of cash flows for the year ended December 31, 2012, using the indirect method.

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VANCO COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 $ 68,000 50,000 $ 45,000 Cash Accounts receivable 58,000 Inventory Prepaid expenses Land 151,450 15,280 142,000 21,000 145,000 225,000 (45,000) 200,000 130,000 155,000 (35,000) Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Total 200,000 (60,000) (40,000) $749,730 $676,000 Liabilities and Stockholders' Equity $ 44,730 300,000 $ 36,000 Accounts payable Bonds payable Common stock, $1 par Retained earnings 300,000 200,000 160,000 180,000 205,000 Total $749,730 $676,000