The following balance sheets are taken from the records of Golding Company (numbers are expressed in thousands):

Additional information is as follows:
a. Equipment costing $10,000,000 was purchased at year-end. No equipment was sold.
b. Net income for the year was $25,000,000; $10,000,000 in dividends were paid.

Required:
1. Prepare a statement of cash flows by using the indirect method.
2. Assess Golding's ability to use cash to acquire Lemmons Company. Consider the information in Exhibit 15-2 and Cornerstone 15-6 as part of youranalysis.

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2010 Assets $130,000 25,000 50,000 (20,000) 10,000 $195,000 $150,000 20,000 60,000 (25,000) 10,000 $215,000 Accounts receivable Plant and equipment Accumulated depreciation Total assets Liabilities and equity Accounts payable Bonds payable Common stock Retained earnings $10,000 8,000 120,000 57,000 $195,000 S 5,000 18,000 120,000 72,000 $215,000 Total liabilities and equity