Using financial statements to prepare a statement of cash flows'Indirect method The following financial statements were drawn from the records of Healthy Products Co.

Additional Data
1. During 2012, the company sold equipment for $6,800; it had originally cost $8,400. Accumulated depreciation on this equipment was $3,400 at the time of the sale. Also, the company purchased equipment for $5,000 cash.
2. The company sold land that had cost $2,000. This land was sold for $1,400, resulting in the recognition of a $600 loss. Also, common stock was issued in exchange for title to land that was valued at $7,000 at the time of exchange.
3. P aid dividends of $900.
Required
Prepare a statement of cash flows using the indirect method.

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Balance Sheets As of December 31 2012 2011 Assets $ 1,940 2,000 2,600 17,100 (12,950) 8,000 $18,690 $16,120 2,400 2,000 13,700 (11,300) Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land 13,000 $35,920 Total assets Liabilities and stockholders' equity Accounts payable (inventory) Long-term debt Common stock $ 3,600 3,200 17,000 12,120 $ 2,400 4,000 10,000 2,290 Retained earnings $35,920 $18,690 Total liabilities and stockholders' equity Income Statement For the Year Ended December 31, 2012 $17,480 (6,200) 11,280 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land (1,750) 9,530 1,800 (600) $10,730 Net income