Financial Statements: Cash Flow Statement - Indirect Method A comparative balance sheet for Captain America Anti-Aging Corp. is presented below: July 31, 20Y2 20Y1 Assets Cash Accounts Receivable $ 73,000 82,000 $ 22,000 66,000 Inventories 180,000 189,000 Land 71,000 110,000 Equipment 260,000 200,000 (69,000) (42,000) Total $ 597,000 $545,000 Less: Accumulated Depreciation Liabilities and Stockholders' Equity $ 34,000 150,000 $ 47,000 Taxes Payable Bonds Payable 200,000 Common Stock ($1 par) 214,000 164,000 Retained Earnings 199,000 134,000 Total $ 597,000 $545,000 Notes are an integral part of the financial statements. Required: Review the information below and prepare a Statement of Cash Flow using the indirect method on the next page. 1. Net Income for 20Y2 was $125,000 and Tax Expense was 38,000. 2. Bonds payable amounting to $50,000 were retired through the issuance of common stock. 3. Equipment was sold for $20,000 on the last day of the year. Accumulated depreciation on the equipment was $10,000 at the date of sale. 4. Equipment costing $75,000 was purchased. 5. . Remember: . The Account Values New [Most Recent Year] - Old[Previous Year] Operating Activities: Net Income, Amort./Depreciation, Current Assets, Current Liabilities Investing Activities: Long-Term Assets, except Accumulated Depreciation Financing Activities: Long-Term Debt and Owners' Equity Supplemental Information at bottom of statement: Cash Paid for Interest, Cash Paid for Taxes and Significant Non-Cash Transactions Current Year Expense + Prior Year Payable - Current Year Payable Cash Paid for = A mnemonic All Otters LOve Swimming Assets go Opposite and Liabilities and Owners' Equity go the Same way