Satu Company’s current-year income statement, comparative balance sheets, and additional information follow. 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) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

Required

Prepare a complete statement of cash flows using the indirect method for the current year.

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SATU COMPANY SATU COMPANY Comparative Balance Sheets Income Statement At December 31 Current Year Prior Year For Current Year Ended December 31 Assets Sales $750,800 Cash.. $ 58,750 $ 28,400 Cost of goods sold . Gross profit.. 269,200 Accounts receivable 20,222 25,860 481,600 Inventory .. 165,667 140,320 Operating expenses (excluding depreciation) 173,933 Total current assets. 244,639 194,580 Depreciation expense 15,700 Equipment. 107,750 77,500 Income before taxes.. 291,967 (31,000) $241,080 Accum. depreciation-Equipment (46,700) $305,689 Total assets Income taxes expense 89,200 Net income $202,767 Liabilities and Equity Accounts payable Income taxes payable. $ 20,372 $157,530 2,100 6,100 Total current liabilities. 22,472 163,630 Equity Common sto $5 par value Paid-in capital in excess 40,000 25,000 Additional Information on Current-Year Transactions a. Purchased equipment for $30,250 cash. of par, common stock. Retained earnings. 68,000 20,000 b. Issued 3,000 shares of common stock for $21 cash per share. 175,217 32,450 Total liabilities and equity $305,689 $241,080 c. Declared and paid $60,000 of cash dividends.