$1,609,000 1.127800 $ 481,200 Wu Company Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin Operating expenses (including depreciation expense of $46,800) Income from operations Other Income (expenses) Gain on sale of furniture and fixtures $ 7,000 Interest expense 123,200) Income before income taces Income taxes expense Net Income 449 400 $ 31,800 (16,200) 15,600 4600 11,000 2010 Wu Company Comparative Balance Sheets December 31, 2011 and 2010 2011 Assets Cash $164,800 Accounts receivable (net) 165,200 Merchandise Inventory 350,000 Prepaid rent 2,000 Furniture and futures 148,000 Accumulated depreciation-furniture and foctures (42,000) Total assets 5788.000 Llabilities and Stockholders' Equity Accounts payable $143.400 Income taxes payable 1400 Notes payable (long-term) 40,000 Bonds payable jo 100,000 Common stock, $20 par value 240,000 Additional palo in capital 181.440 Retained earnings 81,760 Total liabilities and stockholders' equity $788.000 $ 50,000 200,000 450,000 3,000 144,000 (24,000) $823,000 $200,400 4400 20,000 200,000 200,000 121.440 76,760 $8230 Additional information A. Sold Furniture with an original cost of $35,600, at a gain of 57000. B. Purchased Pumiture in the amount of $39,600. C. Paid S20,000 on an existing note payablo. D. Borrowed $40,000 on a new note. E. No new bonds were issued during the period. F. New stock was issued for cash. Prepare a statement of cash flows for Wu using the indirect method