The following information, in T-account format, is provided for Mars Company for the year 2012:

Additional information:
a. Sales revenue for the period was $164,000. Accounts receivable (net) decreased $4,000 during the period.
b. Net purchases of $48,000 were made during 2012, all on account. Accounts payable increased $2,500 during the period.
c. The equipment account increased by $21,000 during the year.
d. One piece of equipment that cost $8,000, with a net book value of $4,000, was sold for a $1,000 gain.
e. The company borrowed $22,000 from its bank during the year.
f. Various operating expenses were all paid in cash, except for depreciation of $2,400. Total operating expenses were $43,200.
g. Interest expense for the year was $1,800. The interest payable account decreased by $300 during the year.
h. Income tax expense for the year was $4,200. The income taxes payable account increased by $900 during the year.
Required:
1. From the information given, reconstruct the journal entries that must have been made during the year (omit explanations).
2. Prepare a statement of cash flows for Mars for the year ended December 31,2012.

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Cash 16,300 (b) 168,000 (c) 5,000 (f) 22,000 (g) Beg. bal. 45,500 29,000 (a) (d) 40,800 (e) 2,100 (h) 3,300 End, bal. 90,600