Following is an income statement for Caliope, Inc., for the year ended December 31, 2009, and the company€™s balance sheets as of December 31, 2008 and 2009. The prepaid expenses and accrued liabilities included in Caliope€™s balance sheets involve selling or general (operating) expenses. All of Caliope€™s sales and merchandise purchases are made on a credit basis. Following is additional financial information that was obtained from Caliope€™s accounting records for 2009.
Collections of accounts receivable....................................... $194,300
Purchases of merchandise...................................................... 70,200
Prepayments of operating expenses........................................ 34,600
Payments to suppliers............................................................. 74,000
Proceeds from sale of land....................................................... 5,200
Sale of 600 shares of $1 par value
common stock for $8 per share................................................. 4,800
Declaration and payment of cash
dividends on common stock...................................................... 15,000
Payments of 2009 income taxes.............................................. 26,000

Required:
Prepare a statement of cash flows for Caliope, Inc. for the year ended December 31, 2009, using the indirect method.

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Caliope, Inc. Income Statement For the Year Ended December 31, 2009 Sales Cost of Goods Sold Gross Profit Operating Expenses $185,800 (73,600) $112,200 Selling & Administrative Expenses $29,200 Depreciation Expense Operating Income Loss on Sale of Land Income before Income Tax Income Tax Expense Net Income 11400 (40,600) 71,600 (5,000) S 66,600 (26,400) $40,200 Caliope, Inc. Balance Sheets December 31,2008 and 2009 2008 2009 ASSETS Cash Accounts Receivable S 24,200 21,200 29,100 2,600 S 77,100 78,900 12,700 26,000 8.000 S125,600 Prepaid Expenses Total Current Assets $101,000 S104,000 Accumulated Depreciation 32,600 1,400 4000) 00 10,200 S159,000 Investment in Land Total Assets $185,600 Accounts Payable Accrued Liabilities 14,200 6,600 S 10,400 7,000 Total Current Liabilities SEOCKHOLDERS EQUITY Common Stock Additional Paid-In Capital Retained Farnings 20,800 $117,400 9,000 36,400 92,800 S 9,600 10,600 118,000 Total SE Total Liabilities & SE 138,200 $159,000 168,200 $185,600