This exercise continues the accounting for Lydon€™s Yard Care, Inc., from the Continuing Exercise in Chapter 10. Assume that Lydon€™s Yard Care, Inc., had the following comparative balance sheet at the end of 2013, its second year of operations.

Requirement
1. Prepare the statement of cash flows for Lydon€™s Yard Care, Inc., for the year ending December 31, 2013 using the indirect method. The following additional information applies to 2013:
–  Common stock was issued at par value.
–  No dividends were declared or paid during the year.
–  No equipment was sold during the year and all purchases of equipment were forcash.

Lydon's Yard Care, Inc. Comparative Balance Sheet December 31, 2013 and 2012 2013 2012 ASSETS Cash Accounts Receivable Lawn Supplies Equipment Less Accumulated Depreciation) Total Assets S13,46$18,600 200 150 6,090 1,200 150 521,000 $20,000 2,520 189 1,260) LIABILITIES Accounts Payable Notes Payable (long-term) S 273 S 1,200 10,000 STOCKHOLDERS EQUITY Common Stock Retained Earnings 4,410 16.317 1.500 7,300 Total Liabilities and Stockholdars' Equity 21,000 S20,000