PB12-3 (Algo) Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12- 5] Audio City, Incorporated, is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Current Year Previous Year $ 65,200 $ 69,400 15,800 23,200 227,000 (63,000) $ 268,200 $ 8,200 2,200 61,000 104,000 92,800 $ 268,200 $ 206,000 92,000 63,000 $ 51,000 21,000 21,000 152,000 (47,000) $ 216,400 $ 19,400 1,000 77,000 72,000 47,000 $ 216,400