Comparative Balance Sheet

University of Kentucky Section 001: 2:00pm

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.