eBook Companys most recent balance sheet, income statement, and other important information for 2022 are presented below.

Additional data for 2022: Sold equipment with a book value of $38,000 (= $198,000 cost $160,000 accumulated depreciation) for $78,000 cash.

Purchased equipment for $278,000 cash. Sold long-term investments for $74,000 cash. These investments had an original cost of $80,000. Purchased long-term investments for $10,000 cash. Issued bonds for $186,000 cash. Issued common stock for $22,000 cash. Declared and paid $52,000 in cash dividends.

Required: Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method.

eBook Company Balance Sheet 2022 2021 Assets Current Assets Cash $ 590,000 $ 720,000 Accounts receivable 710,000 540,000 Merchandise inventory 600,000 360,000 Prepaid expenses 50,000 72.000 Noncurrent Assets Property, plant, and equipment 1,000,000 920,000 Accumulated depreciation (620,000) (520,000) Long-term investments 280,000 350,000 Total assets $2,610,000 $2,442,000 Liabilities and Owners' Equity Current Liabilities Accounts payable $ 120,000 $ 178,000 Accrued liabilities 34,000 60,000 Interest payable 46,000 34.000 Income tax payable 32,000 22,000 Noncurrent Liabilities Bonds payable 216,000 30,000 Owners' Equity Common stock 1,360,000 1,338,000 Retained earnings 802,000 780,000 Total liabilities and owners' equity $2,610,000 $2,442,000 eBook Company Income Statement For the Year Ended December 31, 2022 Sales $1,960,000 Cost of goods sold 1,204,000 Gross margin 756,000 Operating expenses 270,000 Depreciation expense 260,000 Operating income 226,000 Interest expense (26,000) Gain on sale of equipment 40,000 Loss on sale of long-term investments (6,000) Income before taxes 234,000 Income tax expense 160,000 Net income 74,000