The following items include the 2023 and 2022 balance sheet information and the 2023 income statement of the Clear Water Corporation. Additional information about the company’s 2023 transactions is presented after the financial statements.

Additional information:1. Received $5,000 from the sale of the land investment that originally cost $2,000.2. Received $400 cash from the First National Bank on December 31, 2023, as interest income.3. Sold old equipment for $1,400. The old equipment originally cost $4,000 and had accumulated depreciation of $2,000.4. Purchased land costing $5,000 on December 31, 2023, in exchange for a note payable. Both principal and interest are due on June 30, 2024.5. Purchased new equipment for $9,000 cash.6. Paid $3,500 of notes payable.7. Sold additional bonds payable at par of $3,000 on January 1, 2023.8. Issued 1,000 common shares for cash at $2 per share.9. Declared and paid a $5,800 cash dividend on October 1, 2023.

RequiredPrepare a statement of cash flows for Clear Water Corporation using the indirect method.

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Clear Water Corporation Comparative Balance Sheet Information December 31 Cash and cash equivalents Accounts receivable Merchandise inventory Prepaid expenses Investment in land Land Buildings Accumulated depreciation, buildings Equipment Accumulated depreciation, equipment Notes payable Accounts payable Other accrued liabilities Revenues: Sales Cost of goods sold Gross profit Operating expenses Other expenses Depreciation expense, buildings Depreciation expense, equipment Total operating expenses Profit from operations 2023 $ 1,000 4,500 19,000 700 10,000 9,000 60,000 Interest income Interest expense Gain on sale of long-term investment Loss on sale of equipment Profit before taxes Income tax expense Profit 38,000 21,000 6,000 5,000 9,000 5,300 Interest payable Taxes payable Bonds payable, due in 2025 22,000 Common shares 14,000 Retained earnings 18,000 Clear Water Corporation Income Statement For Year Ended December 31 2023 400 300 25,000 16,000 20,200 2022 $ 800 3,100 16,000 600 12,000 4,000 60,000 36,000 16,000 4,000 3,500 10,000 4,200 300 500 54,800 2,000 4,000 120,000 50,000 70,000 60,800 9,200 900 2,000 3,000 600 10,500 2,500 8,000