1. 2002 income statement and its comparative balance sheets for June 30, 2002 and 2001 are as follows: Income Statement for the Year Ended June 30, 2002 Sales Cost of Goods Sold Gross Margin Operating Expenses Operating Income Interest Expense Income Before Income Taxes Income Taxes Net Income 936,000 624.000 312,000 180.000 132,000 11,200 120,800 49.200 Comparative Balance Sheets as on June 30, 2002, and 2001 2002 2001 2 17 Assets $ Cash 279,600 50,000 Accounts Receivable (net)84 ,000 173,600 193,600 12,800 220,000 240,000 104,000 Inventory Prepaid Expenses 10,400 Furniture Accumulated Depreciation on Furniture Total Assets (36,000 (20,000) 734,000 578,000 Liabilities and Stockholders' Equity Accounts Payable Income Taxes Payable Notes Payable (long-term) Common Stock, $10 par value Retained Earnings Total Liabilities and Stockholders' Equity 56,000 7,200 140,000 360,000 52,000 4,800 148,000 460,000 69,200 14,800 734,000 578,000 Additional information: (a) Issued $88,000 note payable in a non-cash exchange for purchase of furniture (b) sold furniture that cost $108,000 with accumulated depreciation of $61,200 at carrying value (c) recorded depreciation on the furniture during the year, $77 200; (d) repaid a note in the amount of $80,000; (e) issued $100,000 of common stock at par value; and (1) declared and paid dividends of $17,200. Prepare a statement of cash flows for 2002 using the indirect method