please help me in Accounting question? P17-11BPresented are the comparative balance sheets for Vernet Company at December 31.VERNET COMPANYComparative Balance SheetsDecember 31Assets20122011Cash$41,000S 57,000Accounts receivable77,00064,000Inventory172,000140,000Prepaid expenses12,14016,540Land110,000150,000Equipment215,000175,000Accumulated depreciation-equipment (70,000)(42,000)Buildings250,000250,000Accumulated depreciation-buildings(70,000)(50,000)TotalS737,140 $760,540Liabilities and Stockholders' EquityAccounts payable$ 58,000$ 45,000Bonds payable235,000265,000Common stock, $1 par280.000250,000Retained earnings164,140200,540TotalS737,140 $760,540Additional information:1. Operating expenses include depreciation expense $55,000 and charges from prepaidexpenses of $4,400.2. Land was sold for cash at cost.3. Cash dividends of $84,290 were paid.4. Net income for 2012 was $47,890.5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with abook value of $33,000 was sold for S37,000 cash.6. Bonds were converted at face value by issuing 30,000 shares of $1 par value common stock.InstructionsPrepare a statement of cash flows for 2012 using the indirect method.

Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…

P17-11B Presented are the comparative balance sheets for Vernet Company at December 31. VERNET COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $41,000 S 57,000 Accounts receivable 77,000 64,000 Inventory 172,000 140,000 Prepaid expenses 12,140 16,540 Land 110,000 150,000 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 S737,140 S760,540 Liabilities and Stockholders' Equity Accounts payable $ 58,000 $ 45,000 Bonds payable 235,000 265,000 Common stock, Si par 280,000 250,000 Retained earnings 164,140 200,540 Total S737,140 $760,540 Additional information: 1. Operating expenses include depreciation expense $55,000 and charges from prepaid expenses of $4,400. 2. Land was sold for cash at cost. 3. Cash dividends of $84,290 were paid. 4. Net income for 2012 was $47,890. 5. Equipment was purchased for $80,000 cash. In addition, equipment costing S40,000 with a book value of $33,000 was sold for S37,000 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 2012 using the indirect method.