Here are comparative balance sheets for Syal Company.
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SYAL COMPANY |
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Comparative Balance Sheets |
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December 31 |
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|
2012 |
2011 |
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Assets |
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Cash |
$ 73,000 |
$ 22,000 |
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Accounts receivable |
85,000 |
76,000 |
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Inventory |
170,000 |
189,000 |
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Land |
75,000 |
100,000 |
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Equipment |
260,000 |
200,000 |
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Accumulated depreciation—equipment |
(66,000) |
(32,000) |
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Total |
$597,000 |
$555,000 |
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Liabilities and Stockholders’ Equity |
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Accounts payable |
$ 39,000 |
$ 47,000 |
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Bonds payable |
150,000 |
200,000 |
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Common stock ($1 par) |
216,000 |
174,000 |
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Retained earnings |
192,000 |
134,000 |
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Total |
$597,000 |
$555,000 |
Additional information:
1. Net income for 2012 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2012, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2012 using the indirect method.