indirect method LO 14-1, 14-3, 14-4 The comparative balance sheets and income statements for Zachary Company follow: Balance Sheets As of December 311 Year 2 Year 1 Assets Cash Accounts receivable $24,261 1,512 $2,700 907 Inventory 6,553 6,143 Equipment 18,292 40,422 Accumulated depreciation-equipment (10,550) (18,671) Land 21,152 11,592 Total assets $61,220 $43,093 Liabilities and equity Accounts payable (inventory) $2,678 $4,327 Long-term debt 2,783 6,361 Common stock 24,700 11,500 Retained earnings 31,059 20,905 Total liabilities and equity $61,220 $43,093 Income Statement 4. Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income. Additional Data $39,080 (15,490) 23,590 (3,842) 19,748 600 (40) $20,308 1. During Year 2, the company sold equipment for $18,037; it had originally cost $29,400. Accumulated depreciation on this equipment was $11,963 at the time of the sale. Also, the company purchased equipment for $7,270 cash. 2. The company sold land that had cost $3,640. This land was sold for $3,600, resulting in the recognition of a $40 loss. Also, common stock was issued in exchange for title to land that was valued at $13,200 at the time of exchange. 3. Paid dividends of $10,154. Required Prepare a statement of cash flows using the Indirect method. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign. For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increase/Decrease in current assets and current liabilities: Plus: Noncash charges Cash flows from investing activities: < Prev 4 of 4 Next Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities: