Satu Company, a merchandiser, recently completed its 2013 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company€™s balance sheets and income statement follow.

Additional Information on Year 2013 Transactions
a. Purchased equipment for $ 30,250 cash.
b. Issued 3,000 shares of common stock for $ 21 cash per share.
c. Declared and paid $ 60,000 of cash dividends.

Required
Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirectmethod.

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SATU COMPANY Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets 58.750 .20,222 Accounts 25,860 Merchandise inventory165,667 40,320 77,500 receivable . SATU COMPANY Income Statement For Year Ended December 31,203 Accum. depreciation-Equipment.(46.700) 31000) Liabilities and Equity Income taxes payable ....2.100 $750,800 Total assets 269.200 $305,689 $241,080 Sales.. Cost of goods sold Gross profit Operating expenses Accounts payable.r... 20.372 157,530 6,100 40.000 25.000 Depreciation expense .15.700 Common stock, $5 par value....4 173.933 89,633 Paid-in capital in excests Other expenses..1 Income before taxes. Income taxes expense. Net income.. 68000 20,o0 $202767 Total liablities and equi305,68 $241.080 297 of par, common stock 89,200 Retained earnings .. __ ..1 20,000 175,217 32.450