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University of Kentucky Section 001: 2:00pm
Comparative balance sheets and income statement of Lexington Company are presented below.
Comparative Balance Sheet as of December 31 Additional information:
2012
2011
Cash
$15,000
$10,000
Noncash current assets
85,000
58,000
Long-term investments
10,000
53,000
Plant assets
335,000
215,000
total
$445,000
$336,000
Accumulated depreciation
$ 20,000
$ 40,000
Current liabilities
40,000
22,000
Bonds payable
75,000
–0–
Common stock
254,000
254,000
Retained earnings
56,000
20,000
Total:
$445,000
$336,000
1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2011, were sold in
2012 for $34,000.
2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2012 for $8,000.
3. Net income for 2012 was $46,000.
4. Dividends paid amounted to $10,000.
Requirement: Prepare a statement of cash flows for the year 2012 using the indirect method.

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