On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare astatement 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

Inventories106,500

90,000

Equipment395,000

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 Payable2,500

5,000

Common Stock, $10 par262,000

230,000

Retained Earnings239,000

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.

Breach Co.Statement of Cash FlowsFor 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:Cash paid for purchase of equipment

Cash flows from investing activities______

Net cash flow used for investing activities_____