Prepare a statement of cash flows in proper format using the indirect method for Applet Inc.'s second year of operation. Show T-account to support your calculations. The following information is provided as a supplement to the financial statements.

1. The company sold equipment for $8,000. The original cost was $15,000 and the depreciation was $10,000.

2. There were no new bonds issued during the year.

3. The company did not repurchase and of its own stock during the year.

Applet Inc.
Income Statement
Year ended year 2
Sales	$ 3,638,000
COGS	2,469,000
Gross Profit	1,169,000
Selling and Administrative Expenses	941,000
Income from operations	228,000
Other gains and revenues:
Gain on sale of equipment	3,000
Income before taxes	231,000
Income tax expense	91,000
Net Income	$ 140,000
Applet Inc.
Balance Sheet
Years 2 & 1
	Year 2	Year 1
Assets
Current Assets:
Cash and cash equivalents	$ 91,000	$ 29,000
Accounts Receivable	637,000	654,000
Inventory	586,000	537,000
Total current assets	1,314,000	1,220,000
Plant, property, & equipment	1,517,000	1,394,000
Less accumulated depreciation	654,000	561,000
Net plant, property, & equipment	863,000	833,000
Total Assets	$ 2,177,000	$ 2,053,000
Liabilities
Current Liabilities
Accounts payable	$ 264,000	$ 220,000
Accrued liabilities	193,000	190,000
Income taxes payables	75,000	71,000
Total current liabilities	532,000	481,000
Bonds Payable	479,000	520,000
Total Liabilities	1,011,000	1,001,000
Stockholders' Equity
Common Stock	157,000	155,000
Retained Earnings	1,009,000	897,000
Total stockholders' equity	1,166,000	1,052,000
Total Liabilities & Stockholders' Equity	$ 2,177,000	$ 2,053,000