Reference no: EM13526602

The comparative balance sheets for Vanco Company as of December 31 are presented below.

VANCO COMPANY  Comparative Balance Sheets  December 31
Assets	2012	2011
Cash	$ 68,000	$ 45,000
Accounts receivable	50,000	58,000
Inventory	151,450	142,000
Prepaid expenses	15,280	21,000
Land	145,000	130,000
Equipment	225,000	155,000
Accumulated depreciation-equipment	(45,000)	(35,000)
Buildings	200,000	200,000
Accumulated depreciation-buildings	(60,000)	(40,000)
Total	$749,730	$676,000
Liabilities and Stockholders" Equity
Accounts payable	$ 44,730	$ 36,000
Bonds payable	300,000	300,000
Common stock, $1 par	200,000	160,000
Retained earnings	205,000	180,000
Total	$749,730	$676,000

Additional information:

1. Operating expenses include depreciation expense of $42,000.

2. Land was sold for cash at book value.

3. Cash dividends of $12,000 were paid.

4. Net income for 2012 was $37,000.

5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash.

6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.

Instructions

Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method.