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The comparative balance sheets for the years ended December 31, 20X0 and 20x1 for Mathewson Corporation are attached. Additional financial information about Mathewson Corporation is provided below. (1) (3) The company purchased land for $15,000 by issuing 2,000 shares of common stock. The company also issued 7,000 shares of common stock for cash during the year. The company purchased $40,000 of equipment by issuing a long term note payable. The company also purchased equipment for cash. The company sold equipment that had an original cost of $10,000 and a book value of $7,000. 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. The company had no purchases or sales of patents during the year. 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 Mathewson Corporation for the year ended December 31, 20X1. 20XO MATHEWSON CORPORATION COMPARATIVE BALANCE SHEETS FOR YEARS ENDED DECEMBER 31, 20X1 AND 20XO 20X1 ASSETS Cash S 20,000 S Accounts Receivable 36.000 Merchandise Inventory 90,000 Prepaid Expenses 1,500 Land 50,000 Equipment 250,000 Accumulated Depreciation, Equipment ( 61,000) Patent 10,000 TOTAL ASSETS S 396,500S 16,500 28.000 85.000 2,000 35,000 175,000 50,000) 13,000 304,500 $ 24,000 10,000 4,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Short Term Notes Payable Income Taxes Payable Long Term Notes Payable Common Stock, S5 par value Paid In Capital in Excess of Par Value Retained Earnings TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 21,000 $ 11,000 5,500 35,000 195,000 10,000 119,000 40,000 150,000 76,500 396,500S 304,500

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