E5-16 Preparing a Simple Statement of Cash Flows Using the Indirect Method LO5-3 Avalos Corporation is preparing its annual financial statements at December 31 of the current year. Listed here are the items on its statement of cash flows presented in alphabetical order. Parentheses indicate that a listed amount should be subtracted on the cash flow statement. The beginning balance in cash was $35,000 and the ending balance was $67,800. $ 32,000 (5,500) 1,200 (5,000) (35,000) 23,000 (7,900) 30,000 Cash borrowed on three-year note Decrease in accounts payable Increase in accounts receivable Land purchased Net income New delivery truck purchased for cash Stock issued for cash