The following schedule shows the account balances of Beneficio Corporation at the beginning and end of the fiscal year ended October 31, 2011.

The following information was also available:
(a) All purchases and sales were on account.
(b) Equipment with an original cost of $15,000 was sold for $7,000.
(c) Selling and general expenses include the following:
Building depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,750
Equipment depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,250
Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 18,000
(d) A 6-month note payable for $50,000 was issued toward the purchase of new equipment.
(e) The long-term note payable requires the payment of $20,000 per year plus interest until paid.
(f) Treasury stock was sold for $1,000 more than its cost.
(g) During the year, a 30% stock dividend was declared and issued. At the time, there were 100,000 shares of $2 par common stock outstanding. However,
1,000 of these shares were held as treasury stock at the time and were prohibited from participating in the stock dividend. Market price was $10 per share after the stock dividend was issued.
(h) Equipment was overhauled, extending its useful life at a cost of $6,000. The cost was debited to Accumulated Depreciation'Equipment.
(i) Beneficio has determined that its purchases and sales of trading securities are operating activities.
Instructions:
Prepare a statement of cash flows for the year ended October 31, 2011, using the indirect method of reporting cash flows fromoperations.

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Debits October 31, 2011 October 31, 2010 Cash and Cash Equivalents 222.000 0,000 48.000 291,000 2,500 95.000 305,000 8,500 5,000 539.000 287.000 35.000 4,000 1,000 $2.053,000 $ 50,000 40,000 100.000 300,000 2,000 195,000 170,000 9.000 0,000 Investment Securities-Trading-… Accounts Receivable Prepaid Insurance Land and Building quipment Discount on Bonds Payable Treasury Stock (at cost) Cost of Goods Sold Selling and General Expenses Income Taxes Unrealized Loss on Trading Securities Loss on Sale of Equipment Total debits $876,000 Credits October 31, 201 October 31, 2010 Allowance for Bad Debts Accumulated Depreciation Building Accumulated Depreciation Equipment... Accounts Payable Notes Payable Current Miscellaneous Expenses Payable Taxes Payable Unearned Revenue Notes Payable-Long-Tenm Bonds Payable -Long-Term Deferred Income Tax Liability Common Stock, $2 par Retained Earnings Appropriated for $ 8,000 26,250 39,750 55,000 70,000 18,000 35.000 1,000 40,000 250,000 47,000 359.400 $ 5,000 22,500 27.500 60,000 20,000 8,700 0,000 9,000 60,000 250,000 53,300 200,000 Possible Building Expansion Unappropriated Retained Earnings Paid-In Capital in Excess of Par Value Sales Gain on Sale of Investment Securities 43,000 34,600 16,000 898,000 2,000 $2,053,000 33,000 112,000 5,000 Total credits $876,000