P14-11B Presented below are the comparative balance sheets for Lewis Company at

Price: $2.50


Presented below are the comparative balance sheets for Lewis Company at
December 31.

Lewis Company
Comparative Balance Sheets
12/31/08
Assets			2,008	2,007
Cash			31,000	57,000
Accounts receivable			77,000	64,000
Inventory			192,000	140,000
Prepaid expenses			12,140	16,540
Land			100,000	150,000
Equipment			215,000	175,000
Accumulated depreciation - equipment			(70,000)	(42,000)
Buildings			250,000	250,000
Accumulated depreciation- buildings			(70,000)	(50,000)
Total			737,140	760,540
Liabilities and Stockholders' Equity
Accounts payable			$58,000	$45,000
Bonds payable			235,000	265,000
Common stock, $1 par			280,000	250,000
Retained earnings			164,140	200,540
Total			737,140	760,540

Additional information:
1. Operating expenses include depreciation expense $65,000 and charges from prepaid
expenses of $4,400.
2. Land was sold for cash at cost.
3. Cash dividends of $69,290 were paid.
4. Net income for 2008 was $32,890.
5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a
book value of $23,000 was sold for $25,000 cash.
6. Bonds were converted at face value by issuing 30,000 shares of $1 par value common stock.

Instructions
Prepare a statement of cash flows for 2008 using the indirect method.