Refer to the information reported about Gazelle Corporation in Problem 16- 1B.
In Problem 16- 1B, Gazelle Corporation, a merchandiser, recently completed its calendar- year 2013 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company€™s balance sheets and income statement follow.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was $ 158,100.
b. Accounts receivable decreased.
c. Merchandise inventory decreased.
d. Prepaid expenses decreased.
e. Accounts payable decreased.
f. Depreciation expense was $ 38,600.
g. Sold equipment costing $ 51,000, with accumulated depreciation of $ 22,850, for $26,050 cash. This yielded a loss of $ 2,100.
h. Purchased equipment costing $ 113,250 by paying $ 43,250 cash and (i.) by signing a long- term note payable for the balance.
j. Borrowed $ 5,000 cash by signing a short- term note payable.
k. Paid $ 47,500 cash to reduce the long- term notes payable.
l. Issued 3,000 shares of common stock for $ 15 cash per share. m. Declared and paid cash dividends of $53,600.

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GAZELLE CORPORATION Comparatve Balance Sheets December 31,2013 and 2012 2013 2012 Assets GAZELLE CORPORATION Income Statement For Year Ended December 31, 2013 Accounts receivable... 77,100 80.750 15.100 7000 Sales 262250 200,000 Cost of goods sold Prepaid expenses1 $1.185,000 595,000 590,000 Total assets 60750 00 Operating expenses Liabilities and Equity Depreciation expense .38,600 Other expenses.... 17.750 02,00O 15,000 00 Total operating expenses 362.850 401,450 188,550 Short-term notes payable. Long-term notes payable...100,000 77,500 Common stock $5 par........215,000 00000 Other gains (losses) Paid-in capital in excess Loss on sale of equipment (2,100) 186,450 28,350 158,100 30,000 of par, common stock.... Retained earnings.. Total liabilities and equity07.750 0 Income before taxes . 230,000 25,500 Income taxes expense $5,000Net income