P$175$B Vaughan Sales Corp. prepared the financial statements for the year ended December $31$ shown below:

Vaughan sales corp

Income statement

For the year ended dec $31,2023$

Net sales $ $267,000$

Cost of goods sold $ $120,000$

Gross margin $ $147,000$

operaing expenses

selling expenses $ $73,800$

Administrative expense $ $43,500$

Interest expense $ $8,700$

Total operaing expenses $ $126,000$

Operating income $ $21,000$

Income tax $ $8,400$

Net income $ $12,600$

Vaughan sales corp

Balance sheet

dec $31,2023$ and $2022$

$20232022$

Cash $ $6,000$ $ $27,600$

Investments in money market funds $ $1,500$ $ $4,500$

Accounts receivable $ $12,700$ $ $34,200$

Inventory $ $45,900$ $ $107,815$

Prepaid expenses $ $3,600$ $ $2,850$

Equipment $ $285,600$ $ $235,535$

Less:Accumulated amortization $ $24,000$ $ $15,000$

Land $ $90,000$ $ $-$

Goodwill $ $18,000$ $ $22,500$

Total assets $ $439,300$ $ $420,000$

Liabilities

Accounts payable $ $21,300$ $ $22,500$

Salaries payable $ $34,000$ $ $21,000$

Loans Payable $ $84,000$ $ $99,000$

Total liabilities $ $139,300$ $ $142,500$

Shareholders equity

Common shares $ $165,000$ $ $150,000$

Retained earnings $ $135,000$ $ $127,000$

Total Shareholders equity $ $300,000$ $ $277,500$

Total liabilities and shareholdes equity $ $439,300$ $ $420,000$

Additional information:

The administrative expenses included the following:Amortization expense on equipment $=$$$24000$

Write$-$down of goodwill $=$$$4500$

Sold equipment for its net book value. The equipment cost $$44,685$ and had been amortized for $$15,000.$

Purchased additional equipment for $$94,750.$

Exchanged common shares for land valued at $$90,000.$

Declared and paid cash dividends on common shares, $$5,100.$

Repurchased common shares for $$75,000.$

Paid $$23,700($of which $$8,700$ was interest$)$ on the loans.

Required

Prepare a cash flow statement for Vaughan Sales Corp. for the year ended December $31,2023,$ using the indirect method. Consider the investments in money market funds to be a cash equivalent.

Comment on the results indicated by the cash flow statement you created.