Condensed comparative balance sheets of Garrett Company at December 31, Years 1 and 2, are as follows:

	Year 2	Year 1
Cash	$90,000	$78,000
Accounts receivable (net)	78,000	85,000
Inventories	106,500	90,000
Equipment	410,000	370,000
Accumulated depreciation	(150,000)	(158,000)
Total assets	$534,500	$465,000
Accounts payable (merchandise creditors)	$53,500	$55,000
Cash dividends payable	5,000	4,000
Common stock, $10 par	200,000	170,000
Paid-in capital in excess of par	62,000	60,000
Retained earnings	214,000	176,000
Total liabilities and stockholders' equity	$534,500	$465,000

In addition, assume that equipment costing $125,000 was purchased for cash, and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000.

Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Garrett Company Statement of Cash Flows For the Year Ended December 31, Year 2

Cash flows from (used for) operating activities:
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockNet income	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockDepreciation	- Select -
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockLoss on sale of equipment	- Select -
Changes in current operating assets and liabilities:
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockDecrease in accounts receivable	- Select -
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockIncrease in inventories	- Select -
Cash from sale of equipmentCash paid for dividendsCash paid for purchase of equipmentCash received from sale of common stockDecrease in accounts payable	- Select -
Net cash flows from operating activitiesNet cash flows used for operating activities		$- Select -
Cash flows from (used for) investing activities:
Cash from sale of equipmentCash from sale of investmentsDecrease in accounts receivableDepreciationIncrease in inventories	$- Select -
Cash paid for purchase of equipmentDecrease in accounts receivableDepreciationIncrease in inventoriesLoss on sale of equipment	- Select -
Net cash flows from investing activitiesNet cash flows used for investing activities		- Select -
Cash flows from (used for) financing activities:
Cash received from sale of common stockDecrease in accounts payableDepreciationIncrease in inventoriesLoss on sale of equipment	$- Select -
Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in inventoriesLoss on sale of equipment	- Select -
Net cash flows from financing activitiesNet cash flows used for financing activities		- Select -
Net decrease in cashNet increase in cash		$- Select -
Cash balance, January 1, Year 2		fill in the blank 29
Cash balance, December 31, Year 2		$fill in the blank 30