a) prepare a complete statement of cash flows using your answers and info from the income statement below.

( use INDIRECT method for determining cash flows from operaring activities)

Balance Sheets At December Assets: 2019 2018 Cash $ 27,648 Accounts receivable 35.280 $ 28,968 36,116 87,750 70,180 74,052 Merchandise inventory Long-term investments Machinery Accumulated depreciation 210,600 (40,260) 67,680 174,600 _(37.440) Total assets $393.354 $ 341.820 Liabilities: Accounts payable Income taxes payable Bonds payable $ 79,000 11,870 $ 48,456 12,240 58,500 79,200 Total liabilities 149.370 139.896 Equity Common stock 156,000 87.984 126,000 _75.924 Retained earnings Total equity 243.984 201.924 Total liabilities and equity $393.354 $ 341.820 Income Statement For Year Ended Sales $ 288,000 Cost of goods sold $ 97,080 35,280 57,600 2.400 (192,360) Depreciation expense Other operating expenses Interest expense Other gains (losses): Loss on sale of machinery Income before taxes (10,080) 85,560 Income taxes expense 33.180 Net income $ 52.380 (a) (b) Additional Information: Some bonds were retired for $20,700 in cash. Old machinery with an original cost of $45,060 and accumulated depreciation of $32,460 was sold for $2,520 cash. New machinery was purchased for $81,060 cash. Purchased long-term investments for $2,500 in cash Cash dividends of $40,320 were paid. Additional shares of stock were issued for $30,000 in cash. (c) (d) (e) (f) Cash flows from operating activities: Net Income Adjustments: Decrease in accounts receivable Increase in merchandise inventory Increase in accounts payable Increase in income taxes payable Add back: Depreciation expense Add back: Loss on sale of plant assets Net cash provided by operating activities (total of above amounts Cash flows from investing activities: Cash received from sale of plant assets Cash paid to purchase long-term investments Cash paid for purchase of plant assets Net cash used in investing activities (total of above amounts) Cash flows from financing activities: Cash received from issuing stock Cash paid for dividends Cash paid to retire bonds Net cash used in financing activities (total of above amounts) Net increase in cash Cash balance at prior year-end Cash balance at current year-end