The Sunny-vale Corporation prepared for 2002 and 2001 the following balance sheet data.

Cash needed to purchase new equipment and to improve the company's working capital position was raised by borrowing from the bank with a long-term note. Equipment costing \($75,000\) with a book value of \($15,000\) was sold for \($18,000;\) the gain on sale was included in net income. The company paid cash dividends of \($90,000\) and reported earnings of \($280,000\) for 2002. There were no entries in the retained earnings account other than to record the dividend and net income for the year Prepare a statement of cash flows for 2002 using the indirect method.

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Cash and cash equivalents. Accounts receivable Merchandise inventory... Prepaid insurance Buildings and equipment Accumulated depreciation-buildings and equipment Total assets... Dec. 31, 2002 Dec. 31, 2001 $ 518,500 $ 675,000 345,000 360,000 750,000 654,000 4,500 6,000 5,515,500 4,350,000 (2,235,000) Accounts payable Salaries payable 75,000 $4,913,500 $ 613,500 (1,995,000) $4,035,000 $ 945,000 105,000 Notes payable-bank (current). 150,000 600,000 Notes payable-bank (long-term) Common stock. 1,500,000 2,400,000 2,400,000 Retained earnings (deficit) 175,000 (15,000) Total liabilities and stockholders' equity $4,913,500 $4,035,000