P14-11A The comparative balance sheets for Ramirez Company as of December 31 are presented below

Price: $2.50


The comparative balance sheets for Ramirez Company as of December 31 are presented
below.

Ramirez Company
Comparative Balance Sheets
12/31/08
Assets	2008	2007
Cash	71,000	45,000
Accounts receivable	44,000	62,000
Inventory	151,450	142,000
Prepaid expenses	15,280	21,000
Land	105,000	130,000
Equipment	228,000	155,000
Accumulated depreciation - equipment	(45,000)	(35,000)
Buildings	200,000	200,000
Accumulated depreciation- buildings	(60,000)	(40,000)
Total	709,730	680,000
Liabilities and Stockholders' Equity
Accounts payable	$47,730	$40,000
Bonds payable	260,000	300,000
Common stock, $1 par	200,000	160,000
Retained earnings	202,000	180,000
Total	709,730	680,000

Additional information:
1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720.
2. Land was sold for cash at book value.
3. Cash dividends of $15,000 were paid.
4. Net income for 2008 was $37,000.
5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a
book value of $10,000 was sold for $6,000 cash.
6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock.

Instructions
Prepare a statement of cash flows for the year ended December 31, 2008, using the indirect method.