The 2023 and 2022 balance sheets of Gibson Corporation follow. The 2023 income statement is also provided. Gibson had no noncash investing and financing transactions during 2023. During the year, the company sold equipment for $15,200, which had originally cost $12,800 and had a book value of $11,300. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and long-term investments with cash.

Requirements1. Prepare the statement of cash flows for Gibson Corporation for 2023 using the indirect method.2. Evaluate the company’s cash flows for the year. Discuss each of the categories of cash flows in your response.

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12 3 4 5 Sales revenues 6 Less: Cost of goods sold 7 Gross profit 8 9 10 11 12 15 16 13 Operating income 14 Plus other income and less other expenses: Interest expense 17 18 Gibson Corporation Income Statement For the Year Ended December 31, 2023 Less operating expenses: Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses Gain on sale of PP&E Total other income and expenses Income before income taxes 19 Less: Income tax expense 20 Net income 21 $ B 25,000 4,700 13,000 9,300 3,900 $ $ $ C 344,000 77,000 267,000 42,700 224,300 5,400 218,900 36,500 182,400