repare a statement of cash flows under the indirect method. Use a minus to indicate any decreases in cash or cash outflows.

Gains and Losses on the Sale of Long-Term Assets

The income statement for Hubbard's Professional Edge Tennis Camp follows. Assume that all revenues and expenses were for cash and that land was sold for $500. There were no other investing or financing activities during the year. The Cash balances at the beginning and end of the year were $100 and $1,260, respectively.

Hubbard's Professional Edge Tennis Camp

Income Statement

For Year Ended December 31, 20-2Sales (all cash)$2,190Wages expense (all cash)1,530Operating income$660Gain on sale of land100Net income$760