Audio City, Incorporated, 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	$ 37,600	$ 45,200
Accounts Receivable	11,400	15,500
Inventory	16,600	15,500
Equipment	205,000	141,000
Accumulated DepreciationEquipment	(46,500)	(36,000)
Total Assets	$ 224,100	$ 181,200
Accounts Payable	$ 7,100	$ 17,200
Salaries and Wages Payable	2,100	1,000
Notes Payable (long-term)	55,500	66,000
Common Stock	82,000	61,000
Retained Earnings	77,400	36,000
Total Liabilities and Stockholders Equity	$ 224,100	$ 181,200
Income Statement
Sales Revenue	$ 173,000
Cost of Goods Sold	81,000
Other Expenses	46,500
Net Income	$ 45,500

Additional Data:

Bought equipment for cash, $64,000.

Paid $10,500 on the long-term notes payable.

Issued new shares of stock for $21,000 cash.

Dividends of $4,100 were paid in cash.

Other expenses included depreciation, $10,500; salaries and wages, $15,500; taxes, $20,500.

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.)