On the Basis of the Following Data for Branch Co

On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method.
Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. $$\begin{array} { l r r } & \text { Current year } & \text { Prior year } \\\text { Cash } & \$ 65,000 & \$ 54,000 \\\text { Accounts receivable (net) } & 78,000 & 85,000 \\\text { Inventories } & 106,500 & 90,000 \\\text { Land } & - & 20,000 \\\text { Equipment } & 495,000 & 370,000 \\\text { Accumulated depreciation } & ( 215,000 ) & ( 158,000 ) \\& \underline{\$ 529,500} & \underline{\$ 461,000} \\& & \\\text { Accounts payable (merchandise creditors) } & \$ 53,500 & \$ 55,000 \\\text { Common stock, } \$ 10 \text { par } & 200,000 & 170,000 \\\text { Paid-in capital in excess of par-common stock } & 62,000 & 60,000 \\\text { Retained earnings } & 214,000 & 176,000 \\& \$ 529,500 & \$ 461,000\end{array}$$