The comparative balance sheets and an income statement for Raceway Corporation follow.

Balance Sheets
As of December 31
	Year 2	Year 1
Assets
Cash	$64,105	$38,370
Accounts receivable	31,691	23,240
Inventory	156,392	172,030
Prepaid rent	2,305	4,610
Equipment	260,280	289,120
Accumulated depreciation	(142,500)	(233,010)
Land	189,830	76,730
Total assets	$562,103	$371,090
Liabilities
Accounts payable (inventory)	$63,703	72,260
Salaries payable	34,755	29,790
Stockholders equity
Common stock, $50 par value	249,000	199,000
Retained earnings	214,645	70,040
Total liabilities and equity	$562,103	$371,090

Income Statement
For the Year Ended December 31, Year 2
Sales	$1,503,000
Cost of goods sold	(798,795)
Gross profit	704,205
Operating expenses
Depreciation expense	(21,830)
Rent expense	(25,340)
Salaries expense	(253,350)
Other operating expenses	(259,080)
Net income	$144,605

Other Information

Purchased land for $113,100.

Purchased new equipment for $102,900.

Sold old equipment that cost $131,740 with accumulated depreciation of $112,340 for $19,400 cash.

Issued common stock for $50,000.

Required Prepare the statement of cash flows for Year 2 using the indirect method