(Solution) - The comparative balance sheets for Strackman Lux Company as of -(2025 Original AI-Free Solution)

Paper Details

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

Additional information:
1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720.
2. Land was sold for cash at book value.
3. Cash dividends of $15,000 were paid.
4. Net income for 2012 was $37,000.
5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash.
6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2012, using the indirectmethod.