The comparative balance sheets and an income statement for Wang Beauty Products, Inc.,

Income Statement
For the Year Ended December 31, 2014
Sales .......... $1,500,000
Cost of goods sold ..... (797,200)
Gross profit ......... 702,800
Operating expenses
Depreciation expense .... (22,800)
Rent expense ........ (24,000)
Salaries expense ....... (256,000)
Other operating expenses .. (258,000)
Net income ....... $ 142,000

Other Information
1. Purchased land for $112,000.
2. Purchased new equipment for $100,000.
3. Sold old equipment that cost $132,000 with accumulated depreciation of $112,000 for $20,000 cash.
4. Issued common stock for $50,000.

Required
Prepare the statement of cash flows for 2014 using the indirectmethod.

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Balance Sheets As of December 31 2014 2013 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land $68,800 30,000 160,000 $40,600 22,000 176,000 4,800 288,000 236,000) 80,000 $375,400 2,400 256,000 (146,800) 192,000 $562,400 Total assets Liabilities and equity Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, S50 par value Retained earnings S 67,000 28,000 S 76,000 24,000 250,000 217,400 $562,400 200,000 75,400 $375,400 Total liabilities and equity