Refer to the information reported about Taurasi Company in Problem 16-4B.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report operating activities under 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 $88,425.
b. Accounts receivable decreased.
c. Merchandise inventory increased.
d. Accounts payable increased.
e. Income taxes payable decreased.
f. Depreciation expense was $17,700.
g. Purchased equipment for $28,950 cash.
h. Issued 3,000 shares at $14 cash per share.
i. Declared and paid $66,000 of cashdividends.

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TAURASI COMPANY Comparative Balance Sheets December 31, 20II and 2010 2011 2010 ....53,925 31.800 19.425 175.350 105.450 49.300) Accounts receivable TAURASI COMPANY Income Statement For Year Ended December 31,201I 23.250 139,875 76,500 Merchandise inventory 609,750 Total assets.. 279,000 Liabilities and Equity 330,750 $305.850 $240.825 Cost of goods sold Gross profit Operating expenses Accounts payable .. 38.475 35,625 6.750 150,000 Income taxes payable.. Common stock, $2 par value Paid-in capital in excess 4,500 65,000 Depreciation expense. . 17,700 Other expenses... Income before taxes. Income taxes expense Net income.. 179,775 197,475 133,275 44,850 Retained earnings - 88,425 Total liabilities and equity... of par, common stock 15,000 $240,825