Required: Prepare a statement of cash flows, using the indirect method. Amounts to be subtracted should be indicated by a minus sign. Jenson Company Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net income 129,000 Add (deduct) adjusting items: Depreciation 26,000 Decrease in accounts receivable Increase in accounts payable Increase in inventories Gain on sale of investments x Net operating cash Cash flows from investing activities: Sale of investments Purchase of equipment Net cash from investing activities Cash flows from financing activities: Sale of common stock Retired bonds payable Payment of dividends Net cash from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year X X X X The balance sheets for Jenson Company for the years ended December 31, Year 2 and Year 1, are as follows: Year 2 Year 1 Cash $53,000 $50,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments 70,000 Equipment 573,200 450,000 Accumulated depreciation-equipment (142,000) (176,000) $629,700 $542,000 Accounts payable $62,500 $43,800 Bonds payable, due Year 2 100,000 Common stock, $10 par 325,000 285,000 Paid-in capital in excess of par- 80,000 55,000 common stock Retained earnings 162,200 58,200 $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Cost of merchandise sold 340,000 Gross profit $285,700 Operating expenses: Depreciation expense $26,000 Other operating expenses 68,000 94,000 Income from operations $191,700 Other income: Gain on sale of investment $4,000 Other expense: Interest expense 6,000 (2,000) Income before income tax $189,700 Income tax 60,700 Net income $129,000 Additional information: a. Fully depreciated equipment costing $60,000 was scrapped with no salvage, and equipment was purchased for $183,200. b. Bonds payable for $100,000 were retired by payment at their face amount. c. 5,000 shares of common stock were issued at $13 for cash. d. Cash dividends of $25,000 were declared and paid. Required