The comparative statements of financial position for Ramirez Company as of December 31 are presented on the shown below.

Additional information:
1. Operating expenses include depreciation expense of R$42,000 and charges from prepaid expenses of R$5,720.
2. Land was sold for cash at book value.
3. Cash dividends of R$15,000 were paid.
4. Net income for 2011 was R$37,000.
5. Equipment was purchases for R$95,000 cash. In addition, equipment costing R$22,000 with a book value of R$10,000 was sold for R$6,000 cash.
6. 40,000 shares of R$1 par value ordinary shares were issued for land with a fair value of R$40,000.

Instructions
Prepare a statement of cash flows for the year ended December 31, 2011, using the indirectmethod.

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RAMIREZ COMPANY Comparative Statements of Financial Position December 31 2011 A ssets Land Equipment Accumulated depreciaton-equipment Building Accumulated depreciation-building Prepaid expenses Inventory Accounts receivable Cash 2010 R$145,00 228,000 (45.000) 200.000 (60.000) 15.280 151.450 44,000 71.000 R$130,000 155,000 (35,000) 200.000 (40.000) 21,000 142.000 62,000 5.000 R$680,000 Total R$749,730 Equity and Liabilities Share capital-ordinary. RS1 par Retained earnings Bonds payable Accounts payable R$200,000 202,000 300,000 47,730 R$749.730 R$160,000 180,000 300,000 40,000 R$680,000 Total