6 Problem 12-18A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and income statements for Gypsy Company follow. Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Balance Sheets As of December 31 Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data $34,450 (13,655) 20,795 (3,992) 16,803 750 (100) $17,453 Year 2 $23,483 2,068 6,476 18,703 (8,065) 17,976 $60,641 $2,764 2,692 21,600 33,585 $60,641 Year 1 $2,998 1,241 6,071 43,053 (17,561) 10,176 $45,978 $4,466 6,153 10,500 24,859 $45,978

Problem 12-18A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and income statements for Gypsy Company follow. Additional Data Additional Data 1. During Year 2, the company sold equipment for $18,862; it had originally cost $31,600. Accumulated depreciation on this equipment was $13,488 at the time of the sale. Also, the company purchased equipment for $7,250 cash. 2. The company sold land that had cost $3,300. This land was sold for $3,200, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for tite to land that was valued at $11,100 ot the time of exchange. 3. Paid dividends of $8,727 Required Prepare a statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.)