Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14-4

The comparative balance sheets and an income statement for Stuart Corporation follow:

Balance Sheets As of December 31
	Year 2				Year 1
Assets
Cash	$	73,186			$	41,480
Accounts receivable		29,086				21,330
Merchandise inventory		157,756				173,530
Prepaid rent		2,265				4,530
Equipment		252,030				286,380
Accumulated depreciation		(147,060	)			(235,780	)
Land		188,930				77,430
Total assets	$	556,193			$	368,900
Liabilities
Accounts payable (inventory)	$	62,627				71,040
Salaries payable		25,795				22,110
Stockholders equity
Common stock, $50 par value		251,500				199,500
Retained earnings		216,271				76,250
Total liabilities and equity	$	556,193			$	368,900

Income Statement For the Year Ended December 31, Year 2
Sales	$	1,499,000
Cost of goods sold		(796,669	)
Gross profit		702,331
Operating expenses
Depreciation expense		(22,230	)
Rent expense		(28,520	)
Salaries expense		(252,600	)
Other operating expenses		(258,960	)
Net income	$	140,021

Other Information

Purchased land for $111,500.

Purchased new equipment for $95,900.

Sold old equipment that cost $130,250 with accumulated depreciation of $110,950 for $19,300 cash.

Issued common stock for $52,000.

Required

Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.)

Required Prepare the statement of cash flows for 2017 using the Indirect method. (Amounts to be deducted and cash outflows should be Indlcated bv a minus slan.)