The following balance sheets were taken from the records of Blalock Company:

Additional transactions were as follows:
a. Sold equipment costing $12,000 with accumulated depreciation of $9,000 for $2,000.
b. Retired bonds at a price of $60,000 on December 31.
c. Earned net income for the year of $68,000; paid cash dividends of $20,000.

Required:
Prepare a statement of cash flows by using the indirectmethod.

Transcribed Image Text:

2 Plant and equipment Accumulated depreciation gs Total liabilities and equity