Additional Data:

a$.$ Bought new golf clubs for $$2,900$ cash and sold existing clubs for $$1,000$ cash. The clubs that were sold had cost $$2,000$ and had

Accumulated Depreciation of $$610$ at the time of sale.

b$.$ Borrowed $$1,900$ cash from the bank during the year.

c$.$ Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability

accounts relating to income tax, assume that Income Tax Expense was fully paid in cash.

Required:

Prepare the statement of cash flows for the year ended December $31$ using the indirect method. $($Amounts to be deducted should

be indicated with a minus sign.$)$

SOFT TOUCH COMPANY