The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.:

 

Cellular Telephone Sales, Inc. Comparative balance sheets 2011 December 31 and 2010

 

Assets	2011	2010
Cash	$76,105	$51,000
Accounts receivable, net	26,075	24,250
Merchandise inventory	30,000	35,000
Supplies on hand	1,750	2,550
Prepaid expenses	1,400	1,200
Land	1,80,000	1,42,500
Equipment	2,70,000	3,00,000
Accumulated depreciation – equipment	-75,000	-67,500
Total assets	$510,330	$489,000
Liabilities and stockholders" equity
Accounts payable	$ 45,330	$ 76,300
Salaries payable	4,000	2,000
Accrued liabilities payable	2,000	8,250
Long-term note payable	1,50,000	1,50,000
Common stock ($5 par)	1,85,000	1,65,000
Paid-in capital in excess of par	32,500	-0-
Retained earnings	91,500	87,450
Total liabilities and stockholders" equity	$510,330	$489,000

 

Land was bought for USD 37,500 cash. The company intends to build a building on the land. Currently the company leases a building for its operations.

 

Equipment costing USD 50,000 with accumulated depreciation of USD 30,000 was sold for USD 23,500 (a gain of USD 3,500), and equipment costing USD 20,000 was purchased for cash.

 

Depreciation expense for the year was USD 37,500.

 

Common stock was issued for USD 52,500 cash.

 

Dividends declared and paid in 2011 totaled USD 32,950.

 

Net income was USD 37,000.

The company paid interest of USD 3,000 and income taxes of USD 17,000. Prepare a statement of cash flows under the indirect method. Also prepare any necessary supplemental schedule(s)