Exercise 14-2 Preparing a Cash Flow StatementIndirect Method (LO2 - CC3) Comparative financial statement data for Clear Lake Inc. follow: Year 2 Year 1 Cash $ 7 $ 6 Accounts receivable 22 24 Inventory 50 40 Plant and equipment 240 200 Less: Accumulated depreciation (65 ) (50 ) Total assets $ 254 $ 220 Accounts payable $ 40 $ 36 Common shares 150 145 Retained earnings 64 39 Total liabilities and stockholders' equity $ 254 $ 220 For year 2, the company reported net income as follows: Sales $ 275 Cost of goods sold 150 Gross margin 125 Operating expenses 90 Net income $ 35 Dividends of $10 were declared and paid during year 2. Required: Using the indirect method, prepare a cash flow statement for year 2. (List any deduction in cash and cash outflows as negative amounts.)