Comparative balance sheet data for the partnership ofYoung and Jones are presented below.

Net income for the year was \($43,000,\) and this was transferred in equal amounts to the partners' capital accounts. Further changes in the capital accounts arose from additional investments and withdrawals by the partners. The change in the furniture and fixtures account arose from a purchase of additional furniture; part of the purchase price was paid in cash and a long-term note was issued for the balance.

Instructions:

Using the indirect method, prepare a statement of cash flows for 2002.

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Cash. Accounts receivable. Inventory... Prepaid expenses. Furniture and fixtures Accumulated depreciation Total assets... Dec. 31, 2002 $ 14,000 22,000 112,500 Dec. 31, 2001 $ 10,500 25,500 85,000 3,500 4,250 64,500 42,000 (33,875) (25,425) $182,625 $ 7,000 19,425 17,700 Donna Young, capital. 51,375 50,875 Diane Jones, capital... 87,125 56,875 Total liabilities and stockholders' equity... $182,625 $141,825 Accrued expenses. Accounts payable. Long-term note.. $141,825 $ 5,200 28,875