Accountants for Datsun, Inc., have assembled the following data for the year ended December 31, 2007:

Requirement 

Prepare Datsun's statement of cash flows using the indirect method to report operating activities. Include an accompanying schedule of noncash investing and financing activities.

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December 31, 2007 2006 Current Accounts: Current assets: Cash and cash equivalents. Accounts receivable............. Inventories........... Current liabilities: Accounts payable......... Income tax payable...... Transaction Data for 2007: $49,000 $34,000 70,100 73,700 90,600 86,600 71,600 67,500 5,900 6,800 Payment of cash dividends... $48,000 Depreciation expense... $ 30,200 Issuance of note payable Purchase of equipment........ 69,000 to borrow cash.................. 63,000 Acquisition of land by issuing Net income...... 50,500 long-term note payable... 118,000 Issuance of common stock Payment of note payable.... 47,000 for cash........... 36,000 Gain on sale of building...... 3,500