Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flow method LO 12-1, 12-3, 12-4 The comparative balance sheets and an Income statement for Raceway Corporation follow. Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Balance Sheets As of December 31 Year 2 Year 1 $61,620 $40,930 33,409 24,500 156,774 172,450 2,280 4,560 261,320 (147,990) 287,370 (236,700) 192,030 80,330 $559,443 $373,440 $62,213 70,570 28,992 24,850 249,500 200, 500 218,738 77,520 $559,443 $373,440 Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit $1,501,000 (797,732) 703,268 Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $111,700. 2 Purchased new equipment for $104,100. (22,540) (27,630) (256,420) (255,460) $141,218 3. Sold old equipment that cost $130,150 with accumulated depreciation of $111,250 for $18.900 cash. 4. Issued common stock for $49,000. Required Prepare the statement of cash flows for Year 2 using the Indirect method. (Cash outflows should be indicated with