Using financial statements to prepare a statement of cash flows'Indirect method The comparative balance sheets and an income statement for Lind Beauty Products, Inc., are shown on the next page.

Other Information
1. Purchased land for $66,000.
2. Purchased new equipment for $62,000.
3. Sold old equipment that cost $66,000 with accumulated depreciation of $56,000 for $10,000 cash.
4. Issued common stock f or $30,000.
Required
Prepare the statement of cash flows for 2012 using the indirect method.

Balance Sheets As of December 31 2011 2012 Assets $ 6,300 $ 48,400 Cash Accounts receivable 10,200 45,200 7,260 56,000 2,140 144,000 (118,000) 50,000 Merchandise inventory Prepaid rent Equipment Accumulated depreciation 700 140,000 (73,400) 116,000 Land $245,000 $189,800 Total assets Liabilities and equity Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings $ 37,200 12,200 $ 40,000 10,600 120,000 19,200 150,000 45,600 $245,000 $189,800 Total liabilities and equity Income Statement For the Year Ended December 31, 2012 $480,000 (264,000) Sales Cost of goods sold Gross profit 216,000 Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses (11,400) (7,000) (95,200) (76,000) $ 26,400 Net income