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 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 eamings account were for net income of $56,000 and cash dividends declared of $18,000 Year 2 Year 1 Assets $78,000 Cash Accounts receivable (net) Inventones Equipment Accumulated depreciation Total as $90,000 78,000 106,500 410,000 (150,000) $534,500 B5,000 90,000 370,000 (150,000) 5465,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditor) $53,500 $55,000 Cosh dividends payable 5,000 4,000 Common stock, 110 par 200,000 170,000 Paldin capital in excess of per-common stock 62,000 60.000 Retained earnings 214,000 176,000 Total abilities and stockholders' equity $534,500 5465,000 Use the minun on to indicate cash out flows, cash payments, decreases in con, or any negative adjustments Garrett Co. Previous Next > Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments Garrett Co. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and abilities: Net cash flow from operating activities Cash flows from investing activities LD ID . Net cath flow used for investing activities Cash flows from financing activities Net can now provided by financing activities 18. ALGO Cash at the beginning of the year Cach at the end of the year 114