Question: Create a statement of cash flows (indirect method) for the year ended December 31, Year2

Q1. A colleague who is aware of your understanding of financial statements asks for help in analyzing the transactions and events of Zett Corporation. The following data are provided: ZETT CORPORATION Balance Sheets December 31, Year 1 and Year 2 Year 1 Year 2 Cash .... ...... $ 34,000 $ 34,500 Accounts receivable, net .. . . . .. . 12,000 17,000 Inventory . ..... . . . . . . 16,000 14,000 Investments (long term) . 6,000 Fixed assets . . . . 80,000 93,000 Accumulated depreciation. . . . ... (48,000) (39,000) Total assets. ....... $100,000 $119,500 (continued) Year 1 Year 2 Accounts payable . . $ 19,000 $ 12,000 Bonds payable. . . 10,000 30,000 Common stock . 50,000 61,000 Retained earnings.. ... ..... . .. 21,000 28,000 Treasury stock . . ... . . . . . . (11,500) Total liabilities and equity. . ..... $100,000 $119,500