Indirect Method- Preparing a Statement of Cash Flows The accounting records of Guci Corp. show the following data for the current year. Balance Sheet, December 31 Prior Year Current Year Difference Cash $250 $163 $(87) Accounts receivable 750 500 (250) Merchandise inventory 250 750 500 Equipment, net 4,500 5,500 1,000 Total assets Accounts payable Salaries payable $5,750 $6,913 $1,163 $688 $600 $(88) 125 63 (62) Bonds payable 1,500 1,750 250 Common stock (no-par) 2,750 3,000 250 Retained earnings 688 1,500 812 Total liabilities and stockholders' equity $5,751 $6,913 $1,162 Income Statement For the Current Year Ended December 31 Revenues Cost of goods sold Depreciation Other expenses Net income $7,500 4,250 1,000 963 $1,287 Additional information: 1. Equipment was sold for its book value of $1,000. 2. Equipment purchased during the year was $3,000. 3. Cash dividends declared and paid were $475. Prepare the statement of cash flows for the current year ended December 31, using the indirect method to p Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows. Statement of Cash Flows For the Current Year Ended December 31 Cash flows from operating activities Net income Adjustments Depreciation expense 1,287 1,000