Reference no: EM131922820

Problem - Comparative balance sheets and income statement of Lexington Company are presented below.

Comparative Balance Sheet as of December 31 Additional information:

                                                 2012               2011

Cash                                       $15,000           $10,000

Noncash current assets              85,000             58,000

Long-term investments              10,000             53,000

Plant assets                            335,000            215,000

Total                                    $445,000           $336,000

Accumulated depreciation       $20,000            $40,000

Current liabilities                     40,000              22,000

Bonds payable                        75,000                 -0-

Common stock                      254,000             254,000

Retained earnings                   56,000               20,000

Total:                                  $445,000              $336,000

1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2011, were sold in 2012 for $34,000.

2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2012 for $8,000.

3. Net income for 2012 was $46,000.

4. Dividends paid amounted to $10,000.

Requirement: Prepare a statement of cash flows for the year 2012 using the indirect method.