1 The comparative balance sheets and income statements for Gypsy Company follow. D er 31 Year 2 Year Aaaeta uera rPoelvable 6,402 Inventory 6,077 Rook (7.7691 AccuTlated depreaiation equipment (15, 244) 5 47 568 663.502 Iotal assets Liabilities and equity (inventory 2,538 2,76 4,100 Long-tern debt 6,323 36,998 27.145 Retained earntnas Iotal 11ah111eies and equity 63,502 47,568 For the Year Ended Decenber 31, Year 2 Gross marain 22.630 e Onerarte 50 # 19 , 707 er. 1ncone Additional Date 1. During Year 2 the company sold equipment for $18.262: it had originally cost $28.600. Accumulated depreciation on this equipment was $10,788 at the tme A E ,the company purchased equipment for $6,620 c a $60 loss. Also, common gnition c stock was issued in exchange for tidle to land that was valued at $11,200 at the time of exchange. 3. Paid dividends $9,854 Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 eBook Cash flows from operating activities: Net income S 19,707 Less: Increases in current assets and Decreases in current liabilities Decrease in accounts receivable 2,343 Depreciation expense (15,244) Plus: Noncash charges 6.806 Cash flows from investing activities: Cash flows from financing activities: 6.806 Ending cash balance Schedule of noncash investing and financing activities: 6,806 Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 eBook Cash flows from operating activities: Net income 19,707 Less: Increases in current assets and Decreases in current liabilities: Depreciation expense 3,313 Proceeds from sale of equipment (450) Plus: Noncash charges 22,570 Cash flows from investing activities: Paid to purchase equipment (6,620) Proceeds from sale of equipment 18.262 Proceeds from sale of land 4,700 Increase in accounts receivable 16,342 Cash flows from financing activities: Paid for dividends (9,854) (3,557) Repayment of debt (13,411) Net increase in cash 25,501 Less: Beginning cash balance 2,926 28.427 Ending cash balance Schedule of noncash investing and financing activities