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 earnings account were for net Income of $56,000 and cash dividends dedared of $18,000. Year 2 Year 1 $ 90,000 $78,000 78,000 85,000 Assets Cash Accounts receivable (net) Inventories Equipment Accumulated depreciation Total assets 106,500 410,000 (150,000) $534,500 90,000 370,000 (158,000) $465,000 $55,000 4,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Cash dividends payable Common stock, $10 par Paldin capital in excess of par-common stock Retained earnings Total Habilities and stockholders' equity $53,500 5,000 200,000 62,000 214,000 $534,500 170,000 60,000 176,000 $465,000 Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. 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 liabilities: Net cash flow from operating activities Cash flows from investing activities: di II 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