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 $1,000 $650 $(350) Accounts receivable 3,000 2,000 (1.000) Merchandise inventory 1,000 3,000 2,000 Equipment net 18,000 22.000 4,000 Total assets Accounts payable Salaries payable $23,000 $27,650 $4,650 $2.750 $2,400 $(350) 500 250 (250) Bonds payable 6,000 7,000 1,000 Common stock (no-par) 11.000 12,000 1.000 Retained earnings 2,750 6,000 3,250 Total liabilities and stockholders' equity $23,000 $27,650 $4,650 Income Statement For the Current Year Ended December 31 Revenues Cost of goods sold Depreciation Other expenses Net income $30,000 17,000 4,000 3,850 $5.150 Additional information: 1. Equipment was sold for its book value of $4,000, 2. Equipment purchased during the year was $12,000. 3. Cash dividends declared and paid were $1,900.