Condensed financial data of Fern Galenti, Inc., follow.

Additional information:
1. New plant assets costing \(\$ 85,000\) were purchased for cash during the year.
2. Old plant assets having an original cost of \(\$ 57,500\) were sold for \(\$ 1,500\) cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of \(\$ 22,350\) was declared and paid during the year.
\section*{Instructions}
Prepare a statement of cash flows using the indirect method.

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FERN GALENTI, INC. Comparative Balance Sheet December 31 Assets Cash 1998 1997 $ 97,800 Accounts receivable Inventories Prepaid expenses 90,800 112,500 $ 38,400 33,000 102,850 18,400 16,000 Investments 108,000 94,000 Plant assets 270,000 242,500 Accumulated depreciation (50,000) (52,000) Total $647,500 $474,750