On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using the indirect method of reporting cash flows from (used for) operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000.

- stock was ispued for cash; and that the only entries in the retained earnings accourt were for net income of $56,000 and cash druldends deciared of $18,000. Garrett Co. Statement of Cash Flows Changes in current operating assets and liabilities: Net cash fiows from operating activities Cash flows from (used for) investing activities: Net cash flows used for investing activities Cash flows from (used for) finanoing octivities: Net cash flows from financing activities Cash balance, January 1, Year 2 Cash batance, December 31, Year 2