Prepare a statement of cash flows for the year ending in December 312012 using

Prepare a statement of cash flows for the year ending in December 312012 using the indirect method.

ALLEN COMPANY

Comparative Balance Sheet

Assets Dec.31 2012 Dec.312011

Cash $28000 $13000

A/R 18000 14000

Prepaid Expenses 7000 9000

Inventory 25000 15000

Long Term Investments 16000 18000

Equipment 60000 30000

Accumulated DEprec. Equip (18000) (14000)

Total Assets $120000 $85000

Liabilities & Stock Holders Equity

A/P 25000 7000

Bonds Payable 37000 45000

Common Stock 40000 23000

Retained Earnings 18000 10000

Total Liabilities & Stockholders Equity $116000 $85000

Additional Info

1. Net Income for year ending Dec.312012 was $20000

2. Cash dividends of $12000 were declared and paid during the year.

3. Long term investments that had a book value for $18000 were sold for $16000.

4. Sales for 2012 are $120000