Bonner Corporation's balance sheet and income statement appear below:

The company sold equipment for $10 that was originally purchased for $4 and that had accumulated depreciation of $4. It paid a cash dividend during the year and did not issue any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method

Beginning Balance Comparative Balance Sheet Ending Balance Assets: Cash and cash equivalents......... $36 Accounts receivable.......... 74 Inventory....... 58 Property, plant and equipment. Less accumulated depreciation.... 293 Total assets............. .................... $568 $32 65 693 54 580 277 $454 1 ********** $ $ 59 16 41 Liabilities and stockholders' equity: Accounts payable.......... Accrued liabilities......... Income taxes payable.... Bonds payable. Common stock ........... Retained earnings..... Total liabilities and stockholders' equity 33 290 300 43 40 131 $568 (2) $454 $1,118 719 Income Statement Sales ..... Cost of goods sold ............ Gross margin .......... Selling and administrative expense. Net operating income.... Gain on sale of equipment............ Income before taxes ................... Income taxes ..... Net income ......... 399 170 229 10 239 167 $167 $20 (9 (4) (10) (15) 152 Net income.. Adjustments to convert net income to a cash basis: Depreciation...... Increase in accounts receivable. Increase in inventory ........... Decrease in accounts payable........... Decrease in accrued liabilities......... Decrease in income taxes payable...... Gain on sale of equipment...... Net cash provided by operating activities .... Investing activities: Proceeds from sale of equipment......... Increase in property, plant and equipment ......... Net cash used in investing activities......... Financing activities: Decrease in bonds payable ....... Increase in common stock.. Cash dividends ..................... Net cash used in financing activities ......... Net increase in cash and cash equivalents ... Cash balance, beginning........ Cash balance, ending ........... 10 (11 (107) (10) (3 +) 32 $36