Balance SheetsAs of December 312011AssetsCash 40600Accounts Receivable 22000Merc

Balance SheetsAs of December 312011AssetsCash 40600Accounts Receivable 22000Merchandise Inventory 176000Prepaid Rent 4800Equipment 288000Accumulated Depreciation (236000)Land 80000Total Assets $3754002012AssetsCash 68800Accounts Receivable 30000Merchandise Inventory 160000Prepaid Rent 2400Equipment 256000Accumulated Depreciation (146800)Land 192000Total Assets $562400Liabilities2011Accts Payable (Inventory) 76000Salaries Payable 240002012Accts Payable (Inventory) 67000Salaries Payable 280002011Stockholders EquityCommon Stock $25 par value 200000Retained Earnings 75400Total Liabilities and Stockholders Equity 3754002012Stockholders EquityCommon Stock $25 par value 250000Retained Earnings 217400Total Liabilities and Stockholders Equity 562400Income StatementFor the Year Ended December 31 2012Sales Revenue 1500000Cost of Goods Sold (797200)Gross Profit 702800Operating ExpenseDepreciation expense (22800)Rent expense (24000)Salaries expense (256000)Other operating expense (258000)Net Income $142000Other information1. Purchased land for $1120002. Purchased new equipment for $1000003. Sold old equipment that cost $132000 with accumulated depreciation of $112000 for $20000 cash.4. Issued Common Stock for $50000RequiredPrepare the statement of cash flows for 2012 using the indirect method.