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Galley Corp. a merchandiser, recently completed its 2015 operations for the year, (1) all sales are credit sales (2) all credits to Accounts Receivable reflect

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Galley Corp. a merchandiser, recently completed its 2015 operations for the year, (1) all sales are credit sales (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit (4) all debits to Accounts Payable reflect cash payments for inventory (5) Other Expenses are all cash expenses, and (6) any change in Income Tax Payable reflects the accrual and cash payment of tax The company's statements of financial position and income statement follow 2014 GALLEY CORPORATION Comparative Statements of Financial Position December 31, 2015 and 2014 2015 Assets Cash $ 168,000 Accounts receivable 85,000 Merchandise inventory 605,000 Equipment 345,000 Accum depreciation Equipment (157000) $ 133,000 70.000 520,000 267,000 (104.000) Total assets $ 1,046,000 $ 886,000 Liabilities and Equity Accounts payable Income tax payable $ 144 000 24,000 $ 102 000 21.000 Total assets $ 1,046,000 $ 886,000 Liabilities and Equity Accounts payable Income tax payable Share capital - Ordinary $2 par value Share premium-Ordinary Retained eamings $ 144,000 24,000 592,000 198,000 88,000 $ 102,000 21,000 566,000 159,000 38,000 Total liabilities and equity $ 1,046,000 $ 886,000 GALLEY CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 53,000 Other expenses 499,000 $ 1797,000 1,088,000 709,000 552 000 Profit before tax Income tax expense 157 000 22 000 Net profit $ 135,000 Profit before tax Income tax expense 157,000 22,000 Net profit $ 135,000 Additional Information on Year 2015 Transactions a. Purchased equipment for $78,000 cash b. Issued 13,000 ordinary shares for $5 cash per share. C. Declared and paid $85,000 in cash dividends The company's management wants to classify paymen for dividends as financing activities Required: Prepare a complete statement of cash flows report its cash inflows and cash outflows from operat activities according to the indirect method (Amounts to be deducted should be indicated with a min sign. Omit the "S" sign in your response.)

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