Doug Pederson is the lead accountant for FlyEagles, Inc (FEI). FEI has completed all of its financial statements except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Current Year Prior Year Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 74,700 104,000 78,000 146,000 (41,440) $ 95,400 91,000 84,500 78,000 (21000) Total assets $361,260 $327,900 Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings $ 13,000 2,600 65,000 $ 15,600 1,300 78,000 124,000 156,660 104,000 129,000 Total liabilities and stockholders' equity $361,260 $327.900 Income Statement Sales Cost of goods sold Depreciation expense Other expenses $320,000 170,000 20,440 80,000 Net Income $ 49,560 Other information from the company's records includes the following: a.Bought equipment for cash, $68,000. b.Paid $13,000 on long-term note payable. c.Issued new shares of common stock for $20,000 cash. d.Cash dividends of $21.900 were declared and paid to stockholders. e.Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($12,390) and interest expense ($3,900) were paid in full at the end of both years and are included in Other Expenses. Required: en Ul UU UUU UUUUUUUUUU Required: a. Prepare the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.) FLY EAGLES, Incorporated Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilites: $ 0 Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ ol Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period