Use the following information to prepare a statement of cash flows for the year ended October 31, 2023, using the indirect method.

*$55 of machinery was purchased during 2023; there were no sales of machinery. **No dividends were declared or paid during 2023.

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Sugar Bakery Inc. Income Statement For Year Ended October 31, 2023 Sales $140 Operating expenses: Depreciation expense Other expenses Total operating expenses Profit (loss) Sugar Bakery Inc. Comparative Balance Sheet Information October 31 Cash Accounts receivable (net) Merchandise inventory Machinery (net)* Accounts payable Accrued liabilities Long-term notes payable Common shares Retained earnings** 2023 $25 40 15 75 6 2 $ 5 139 40 95 12 2022 $ 35 45 6 25 25 2 5 50 38 16 144 $ (4)