Presented below are data taken from the records of Morganstern Company. Cash Current assets other than cash Long-term investments Plant assets Accumulated depreciation Current liabilities Bon

Presented below are data taken from the records of Morganstern Company.

Cash

Current assets other than cash

Long-term investments

Plant assets

Accumulated depreciation

Current liabilities

Bonds payable

Capital stock

Retained earnings

December 31,

2012

$15,000

105,000

60,000

330,000

$510,000

88,000

65,000

50,000

173,000

134,000

$510,000

December 31,

2011

$5,000

129,000

50,000

351,000

$535,000

102,000

73,000

100,000

153,000

107,000

$535,000

Additional information:

1. Held-to maturity securities carried at a cost of $25,000 on December 31, 2011, were

in 2012 for $30,000. The gain (not extraordinary) was incorrectly charged directly to

Retained Earnings.

2. Fully depreciated plant assets that cost $57,000 were sold during 2012 for $2,000.

The gain (not extraordinary) was incorrectly charged directly to Retained Earnings.

3. Net income as reported on the income statement for the year was $40,000.

4. Dividends paid amounted to $20,000.

5. Depreciation charged for the year was $43,000.

Required:

Prepare a statement of cash flows for the year 2012 using the indirect method.

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