Refer to the information reported about Galley Corporation in Problem 16-4A.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was $201,000.
b. Accounts receivable increased.
c. Merchandise inventory increased.
d. Accounts payable decreased.
e. Income taxes payable increased.
f. Depreciation expense was $54,000.
g. Purchased equipment for $36,000 cash.
h. Issued 12,000 shares at $5 cash per share.
i. Declared and paid $111,000 of cashdividends.

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GALLEY CORPORATION Comparative Balance Sheets December 31,2011 and 2010 2011 2010 Assets Cash. Accounts recelvable... .$ 174,000 $117,000 93,000 81.000 609,000 534,000 333,000 297,000 GALLEY CORPORATION Income Statement For Year Ended December 31,2011 quipment Accum. depreclation Equipment(56,000) (102.000) Total assets Liablities and Equity Accounts payable 69,000 $96,000 Gross profit Income taxes payable Common stock $2 par value582.000 8,Depreclation expense... $54,000 Paid-In capital in excess $1,053,000 $927000 Sales....a. $1,992,000 1,194,000 798,000 Cost of goods sold 27,000 24000 Operating expenses Other expenses.501000 555,000 243,000 42,000 $ 201.000 on stock 98,000 162,000 Income before taxes .. Retained earnings........177,000 87.000 Income taxes expense Total liabilities and equity. . . $1,053,000 $927,000 Net Income . . . . … .. . ..