On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Cash Accounts Receivable (net) Inventories Land Equipment Accumulated Depreciation Current Year Prior Year $65,000 $54,000 78,000 85,000 106,500 90,000 20,000 495,000 370,000 (215,000) (158,000) $529,500 $461,000 Accounts Payable (merchandise creditors) $53,500 $55,000 Common Stock, $10 par 200,000 170,000 Paid-In Capital in Excess of Par-Common Stock 62,000 60,000 Retained Earnings 214,000 176,000 $529,500 $461,000 Branch Co. Statement of Cash Flows For Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow provided by financing activities Cash at the beginning of the year Cash at the end of the year * D* 000 00 I * | *