Instructions: Using good form; Prepare a statement of cash flows for 2014 using the indirect method.

Traynham Company runs a retail company and recently completed its third year of operations. The balance sheet and income statement follow:

Assets	2014	2013		Income Statement for 2014
Cash	$ 53,000	$ 58,100		Sales revenue		$337,400
Accounts receivable	21,000	24,300		Cost of goods sold		204,000
Inventory	30,800	29,200		Depreciation expense		4,300
Equipment	123,000	92,000		Other expenses		87,000
Accumulated depreciation	28,500	24,200		Income taxes		14,500
Total assets	$199,300	$179,400		Net income		$ 27,600
Liabilities and Equity
Accounts payable	$ 36,300	$ 33,000
Income taxes payable	11,000	8,000
Long-term notes payable	28,000	36,000
Common stock, $2 par	15,000	12,000
Paid-in capital in excess of par	38,000	31,000
Retained earnings	71,000	59,400
Total liabilities and equity	$199,300	$179,400

Additional Information on Year 2014 Transactions

1. Purchased equipment by signing a long-term note for $8,000 and paying cash for the balance

2. Paid cash as a payment on the long-term notes payable

3. Issued 100 shares of common stock for cash

4. Declared and paid cash dividends of $16,000

Instructions: Using good form; Prepare a statement of cash flows for 2014 using the indirect method.