1. Purchased land for $111,000.2. Purchased new equipment for $102,000.3. Sold old equipment that cost $132,640 with accumulated of $111,140 for $21,500 cash. 4. Issued common stock for $50,000.Prepare the statement of cash flows for year 2 using the indirect method.

The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 7 Year 2 Year 1 points Assets Cash $ 72, 944 $ 40 , 740 Accounts receivable 31, 759 23, 290 Merchandise inventory 159, 047 174, 950 eBook Prepaid rent 2, 475 4, 950 Equipment 258, 920 289 , 560 Print Accumulated depreciation (141, 220) (231, 820) 191, 950 References Land 80, 950 Total assets $ 575, 875 $ 382, 620 Liabilities Accounts payable (inventory) $ 62, 636 71, 050 Salaries payable 26, 752 22, 930 Stockholders' equity Common stock, $50 par value 250, 500 200, 500 Retained earnings 235, 987 88, 140 Total liabilities and equity $ 575, 875 $ 382, 620 Income Statement For the Year Ended December 31, Year 2 Sales $1, 502, 000 Cost of goods sold (798, 263) Gross profit 703, 737 Operating expenses Depreciation expense (20, 540) Rent expense (24, 970) Salaries expense (250, 610) Other operating expenses (259, 770) Net income $ 147, 847 Mc Graw Prev of 4