MED Supplies Inc., a software retailer, recently completed its 2023 operations. The following information is available:

Additional information regarding MED Supplies Inc.’s activities during 2023:1. Equipment was purchased for $64,848 cash.2. Issued 3,360 common shares for cash at $28 per share.3. Declared and paid $147,840 of cash dividends during the year.

RequiredPrepare a statement of cash flows for 2023 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations.

Analysis Component:The net increase in cash during 2023 for MED Supplies Inc. was $49,560. Briefly explain what caused this change using the statement of cash flows prepared above.

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MED Supplies Inc.Income Statement For Year Ended December 31, 2023 Sales $1,365,840 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation $ 39,648 402,696 Accounts payable Income taxes payable Common shares Retained earnings MED Supplies Inc. Comparative Balance Sheet Information December 31 2023 $ 120,792 43,512 392,784 236,208 108,192 624,960 $ 740,880 86,184 10,080 463,680 125,160 442,344 $ 298,536 100,464 $ 198,072 2022 $ 71,232 52,080 313,320 171,360 68,544 79,800 15,120 369,600 74,928