Audio City, Inc. is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below:

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	82,500		$	84,800
Accounts Receivable		18,600			24,500
Inventory		27,400			24,500
Equipment		241,000			159,000
Accumulated DepreciationEquipment		(73,500	)		(54,000	)
	$	296,000		$	238,800
Accounts Payable	$	8,900		$	20,800
Salaries and Wages Payable		2,000			1,000
Note Payable (long-term)		64,500			84,000
Common Stock		118,000			79,000
Retained Earnings		102,600			54,000
	$	296,000		$	238,800
Income Statement
Sales Revenue	$	227,000
Cost of Goods Sold		99,000
Other Expenses		73,500
Net Income	$	54,500

Additional Data:

a.	Bought equipment for cash, $82,000.
b.	Paid $19,500 on the long-term note payable.
c.	Issued new shares of stock for $39,000 cash.
d.	Dividends of $5,900 were paid in cash.
e.	Other expenses included depreciation, $19,500; salaries and wages, $24,500; taxes, $29,500.
f.	Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash.

Required:

1.	Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)