The Pruitt Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow:

During the year, the company sold for \(\$ 15,000\) cash old equipment that had cost \(\$ 34,000\) and had \(\$ 19,000\) accumulated depreciation. New equipment worth \(\$ 60,000\) was acquired in exchange for \(\$ 60,000\) of bonds payable. Bonds payable of \(\$ 100,000\) were retired for cash at a loss. A \(\$ 21,000\) cash dividend was declared and paid. All stock issuances were for cash.

Required

a. Compute the change in cash that occurred in 2019.

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

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Sales revenue... PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Cost of goods sold. Wages and other operating expenses Depreciation expense..... Goodwill amortization expense. Interest expense... Income tax expense Loss on bond retirement. Net income... Assets Cash....... Accounts receivable Inventory..... Prepaid expenses.. Plant assets Accumulated depreciation Goodwill.... Total assets PRUITT COMPANY Balance Sheets $770,000 $450,000 195,000 22,000 7,000 5,000 36,000 5,000 720,000 $ 50,000 Dec. 31, 2019 Dec. 31, 2018 $ 8,000 43,000 101,000 $ 19,000 28,000 131,000 12,000 11,000 360,000 334,000 (87,000) (84,000) 43,000 50,000 $480,000 $489,000