can you help me in preparing the cashflow statements and answer so I can better know how to study

7 /3 Worth up to 10 points. Can only be used to increase grade to 50 points and can only be used on Part II of exam. Partial credit can be earned. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) The income statement and comparative balance sheets for Sterling Company are presented below: Sterling Company Income Statement For the Year Ended December 31, 2015 Required; Prepare a statement of cash flows using the indirect method for the year ended December 31, 2015. No land was sold in 2015. Land Was purchased using bonds payable for $8,000 and cash for $2,000. A xed asset was sold in 2015 for $4,100. Purchases of xed assets and patents were for cash. Sales $586,000 Cost of goods sold 311,000 Depreciation expense 14,000 Amortization expense 3,000 Wage expense 88,000 Rent expense 24,000. Loss on sale of xed assets 2,600 Interest expense 4,900 Income tax expense 56,000 Total expenses ' 503,500 Net income $82,500 December 31, 2014 December 31, 2015 Cash $16,300 $19,900 Accounts receivable 27,900 36,300 Inventory 53,900 48,200 Prepaid rent 1,800 2,000 Land 22,000 32,000 Fixed assets 118,000 130,000 Accumulated depreciation (39,000) (46,000) Patent 11,000 12,000 Total assets $211,900 $234,400 Accounts payable 21,100 27,700 Wages payable 5,700 6,200 Interest payable 400 1,600 Taxes payable 7,900 6,800 Bonds payable, due 2020 36,000 44,000 Common stock 32,000 35,000 Retained earnings 108,800 113,100 , Total liabilities and Stockholders' equity $211,900 $234,400