Textbook Problem

The following balance sheets were taken from the records of Blalock Company:

 Additional transactions were as follows:

1. a. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000.
2. b. Retired bonds at a price of $60,000 on December 31.
3. c. Earned net income for the year of $68,000; paid cash dividends of $20,000.

 Required:

Prepare a statement of cash flows using the indirect method.