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Problem 2 (25 points). The comparative balance sheets for the years ending December 31, 20X0 and 20X1 for Douglas Corporation are attached. Additional financial information about Douglas Corporation is provided below DOUGLAS CORPORATION ADDITIONAL INFORMATION FOR PREPARATION OF STATEMENT OF CASH FLOWS FOR YEAR ENDING DECEMBER 31, 20x1 (1) The company purchased land for $15,000 by issuing 2,000 shares of common stock. The (2) The company purchased $60,000 of equipment by issuing a long tem note payable. The (3) The company sold equipment that had an original cost of S20,000 and a book value of company also issued 7,000 shares of common stock for cash during the year. company also purchased equipment for cash. S11,000. The proceeds from the sale were $8,000. All other changes to the accumulated depreciation account were due to the depreciation expense for the period. (4) The company made no purchases or sales of patents during the year (5) The company made repayments on the long term notes. No other notes were issued other than the note discussed in (2) above. (6) Net income for the year was $70,000. All other changes to retained earnings were due to dividends paid during the year REQUIRED: Prepare, in proper form, a statement of cash flows, using the indirect method, for Douglas Corporation for the year ending December 31,20x1

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