GolfGear & More, Inc., is a regional and online golf equipment retailer. The company reported the following for the current year:

Purchased a long-term investment for cash, $15,600.

Paid cash dividend, $12,100.

Sold equipment for $6,500 cash (cost, $22,000, accumulated depreciation, $15,500).

Issued shares of no-par stock, 600 shares at $10 per share cash.

Net income was $20,700.

Depreciation expense was $3,100.

Its comparative balance sheet is presented below.

	Balances 12/31/Current Year			Balances 12/31/Prior Year
Cash		19,500			20,900
Accounts receivable		23,000			23,000
Merchandise inventory		75,600			68,500
Investments		15,600			0
Equipment		93,000			115,000
Accumulated depreciation		(19,700	)		(32,100	)
Total		207,000			195,300
Accounts payable	$	14,100		$	17,500
Wages payable		1,600			2,700
Income taxes payable		4,700			3,100
Notes payable		55,000			55,000
Common stock and additional paid-in capital		106,000			100,000
Retained earnings		25,600			17,000
Total	$	207,000		$	195,300

Required:

1. Complete a T-account worksheet.

2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in proper format. (List cash outflows as negative amounts.)