Urban Togs is a regional retailer of trend-setting clothing that is made with socially and environmentally friendly practices. The company’s income statement and comparative balance sheets are presented below. In addition, the following information was gathered from the company’s records:

Requirement:

Prepare the company’s statement of cash flows using the indirect method.

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a. No new debt was issued during the year. b. Dividends of $200,000 were declared by the board of directors. c. Equipment with an original cost of $20,000 was sold for $9,000. The equipment had accumulated depreciation of $15,000 at the time of sale.