On the basis of the following data for Larson Co$.$ for the year ending December $31$ Year $2,$ and the preceding year ended December $31$ Year $1,$ prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that:

Equipment costing $$125,000$ was purchased for cash.

Equipment costing $$85,000$ with accumulated depreciation of $$65,000$ was sold for $$15,000.$

The stock was issued for cash.

The only entries in the retained earnings account were net income of $$51,000$ and cash dividends declared of $$13,000.$

Year $2$ Year $1$

$\backslash$table$[[$Assets$,,],[$Cash$,$$$100,000,$$$78,000$