Prepare Statement of Cash Flow - Indirect method.

The comparative balance sheets and an income statement for Wang Beauty Products, Inc. are shown next. YoAr 1 Balance Sheets As of December 31 Yoar 2 Assets Cash $ 68,800 Accounts receivable 30,000 Merchandise inventory 160,000 Prepaid rent 2,400 Equipment 256,000 Accumulated depreciation (146,800) Land 192,000 Total assets $562,400 Liabilities and equity Accounts payable (inventory) $ 67,000 Salaries payable 28,000 Stockholders' equity Common stock, $50 par value 250,000 Retained earnings 217,400 Total liabilities and equity $562,400 $ 40,600 22,000 176,000 4,800 288,000 (236,000) 80,000 $375,400 $ 76,000 24,000 200,000 75,400 $375,400 Income Statement For the Year Ended December 31, Year 2 Sales $1,500,000 Cost of goods sold (797,200) Gross profit 702,800 Operating expenses Depreciation expense (22,800) Rent expense (24,000) Salaries expense (256,000) Other operating expenses (258,000) Net income $ 142,000 Other Information 1. Purchased land for $112.000. 2. Purchased new equipment for $100.000 3. Sold old equipment that cost $132.000 with accumulated depreciation of $112.000 for $20.000 cash. 4. Issued common stock for $50.000. Required Prepare the statement of cash flows for Year 2 using the indirect method