I need someone to put this in to a actuall statement of cash flows using the indirect method please. When it is written in paragraph form I do not grasp it.

FARMER COMPANY

Comparative Balance Sheets

December 31,

December 31,

ASSETS

2011

2010

Cash

$ 14,000

$ 9,000

Accounts receivable

52,000

24,000

Inventory

87,000

40,000

Equipment

125,000

100,000

Accumulated depreciation

(42,000)

(34,000)

Prepaid expenses

4,000

2,000

Land

0

7,000

Building

50,000

0

Total Assets

$290,000

$148,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable

$ 25,000

$ 14,000

Interest payable

8,000

6,000

Taxes payable

37,000

11,000

Note payable

37,000

32,000

Bonds payable

75,000

50,000

Common stock, $10 par

75,000

25,000

Retained earnings

33,000

10,000

Total Liabilities and Stockholders’ Equity

$290,000

$148,000

Additional 2011 information:

Net income, $31,000

Sold land for gain of $3,000

Paid dividends of $8,000

Issued $50,000 stock to purchase building

Required:

Using the indirect method, prepare a statement of cash flows for 2011 for Farmer Company using the form below.

Just make a statement of cash flows please, you do not need to use a specific form. I just cannot understand the answer that was in paragraph form.