Given the following Comparative Balance Sheet and condensed Income Statement for Upstream Corporation, prepare a statement of cash flows for 2019 for Upstream Corporation using the indirect method.

The following information was discovered from Upstream Corporation

(a) Cash to purchase new Equipment was raised from a long-term note from the bank.

(b) Equipment with an initial cost of $75,000 and a book value of $15,000 was sold for cash of $18,000. The gain was included in net income.

(c) Cash dividends were paid during the year in the amount of $90,000.

10 11 12 13 14 15 16 17 18 19 Upstream Corporation Comparative Balance Sheet December 31, 2019 and 2018 Assets 2019 2018 Cash and Cash Equivalents $518,500 $675,000 Accounts Receivable $360,000 $345,000 Inventory $750,000 $654,000 Prepaid Insurance $4,500 $6,000 Equipment $5,515,500 $4,350,000 Accumulated Depreciation - Equipment ($2,235,000) ($1,995,000) Total Assets $4,913,500 $4,035,000 Liabilities and Stockholders Equity Accounts Payable $613,500 $945,000 Salaries Payable $75,000 $105,000 Notes Payable (Current) $150,000 $600,000 Notes Payable (Long Term) $1,500,000 $0 Common Stok $2,400,000 $2,400,000 Retained Earnings $175,000 ($15,000) Total liabilities and Stockholders equity $4,913,500 $4,035,000 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Upstream Corporation Condensed Income Statement For the Year Ended December 31, 2019 Sales $1,650,000 Cost of goods sold $948,000 Gross Profit $702,000 Operating Expenses Depreciation Expense $55,000 General Expenses $340,000 Interest Expense $12,000 Income Tax Expense $15,000 $422,000 Net Income $280,000 36 37 38 39 40 41 42 51 52 53 54 Upstream Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2019 Cash flows from operating activities: Net Income Adjustments 55 56 57 58 59 60 61 62 63 64 65 Net Cash Provided by operating activities 66 67 Cash flows from investing activities 68 69 70 Net Cash Provided by investing activities 71 72 Cash flows from financing activities 73 74 75 76 Net Cash Provided by financing activities 77 78 79 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at the end of the year $675,000 80 81 82