The comparative balance sheets and income statements for Gypsy Company follow.

Income Statement
For the Year Ended December 31, Year 2
Sales revenue ..........................................................$61,200
Cost of goods sold ..................................................(24,500)
Gross margin ..........................................................36,700
Depreciation expense ............................................(12,000)
Operating income ..................................................24,700
Gain on sale of equipment ...................................1,500
Loss on disposal of land .......................................(100)
Net income ............................................................$26,100

Additional Data
1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. Also, the company purchased equipment for $29,000 cash.
2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange.
3. Paid dividends of $12,400.

Required
Prepare a statement of cash flows using the indirect method.

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Balance Sheets As of December 31 Year 1 Year 2 Assets $ 32,500 Cash $16,300 2,800 9,800 Accounts receivable 4,750 Inventory Equipment Accumulated depreciation-equipment 11,200 45,000 52,000 (17,800) 28,000 (21,800) 12,000 Land $103,650 $71,100 Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings $ 3,750 $ 4,900 5,800 47,000 7,800 25,000 33,400 47,100 $103,650 Total liabilities and equity $71,100