On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.

Stock was issued for cash-3,200 shares at par.

Net income for the current year was $76,000.

Cash dividends declared and paid were $13,000.

Current Year Prior Year

Assets

Cash $ 170,000 $74,000

Accounts Receivable (net) $78,000 $85,000

Inventories $106,500 $90,000

Equipment $395,000 $370,000

Accumulated Depreciation (195,000) (158,000)

Total assets $554,500 $461,000

Liabilities and stockholders' equity

Accounts Payable (merchandise creditors) $51,000 $50,000

Taxes Payable 2,500 5,000

Common Stock, $10 par 262,000 230,000

Retained Earnings 239,000 176,000

Total Liabilities and Stockholders' Equity $554,500 $461,000

Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

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 activitiesCash 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: