Complex Statement of Cash Flows (Indirect Method)
the Net Changes

Complex statement of cash flows (indirect method)
The net changes in the statement of financial position accounts of Black Beauty Inc. for the calendar year 2020 are shown below: $\begin{array}{lc}\text { \underline{\text{ Account }}} &\text { \underline{\text{ Debit }} } & \text { \underline{\text{ Credit }} } \\\text { Cash. } & \$ 62,800 & \\\text { Accounts receivable } & & \$ 32,000 \\\text { Allowance for doubtful accounts } & & 7,000 \\\text { Inventory. } & 108,600 & \\\text { Prepaid expenses } & 10,000 & \\\text { Long-term investments } & & 72,000 \\\text { Land } & 150,000 & \\~~~~~\text { Buildings } & 300,000 & \\~~~~~\text { Machinery. } & 50,000 & \\~~~~~\text { Office equipment } & & 14,000 \\\text { Accumulated depreciation: } & & \\\text { Buildings } & & 12,000 \\\text { Machinery } & & 10,000 \\\text { Office equipment } & 6,000 & \\\text { Accounts payable } & 91,600 & \\\text { Accrued liabilities} & & 36,000 \\\text { Dividends payable } & & 64,000 \\\text { Bonds payable } & & 416,000 \\\text { Preferred shares } & 30,000 & \\\text { Common shares} & & 189,600 \\\text { Retained earnings } & 43,600 & - &\\\text { } & \$ 852,600 & \$ 852,600 \\ \end{array}$ Additional information:
1. Net income for the year was $ 70,000.
2. Cash dividends of $ 64,000 were declared December 15, 2020, payable January 15, 2021. A 5% common stock dividend was issued March 31, 2020, when the market value was $ 22.00 per share. At the time there were 36,000 common shares outstanding.
3. The long-term investments were sold for $ 70,000.
4. A building which had cost $ 240,000, with a book value of $ 150,000, was sold for $ 200,000, and a new one was purchased.
5. The following entry was made to record an exchange of an old machine for a new one: $\begin{array}{l} \text{ Machinery. } .......................................................................... & 80,000 & \\\text{ Accumulated Depreciation-Machinery } .................................& 20,000 & \\\quad\quad\text{ Machinery }...................................................................... & & 30,000 \\\quad\quad\text{ Cash } ................................................................................& & 70,000 \\ \end{array}$
6. A fully depreciated copier machine, which cost $ 14,000, was written off.
7. Preferred shares originally issued for $ 30,000 were redeemed for $ 40,000.
8. Black Beauty sold 6,000 common shares on June 15, 2020 for $ 25 a share.
9. Bonds were sold at 104 on December 31, 2020.
10. Land with a book value of $ 120,000 was sold for $ 54,000.
Instructions
Prepare a statement of cash flows (indirect method) for calendar 2020.