P17.7 (LO 2, 3), AP Presented here are the financial statements of Warner Company. Excel Warner Company Comparative Balance Sheets December 31 2022 2021 Assets Cash $ 35,000 $ 20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $ 19,000 $ 15,000 Income taxes payable 7.000 8,000 Bonds payable 17,000 33,000 Common stock 18.000 14,000 Retained earnings 50,000 38,000 Total $111.000 $108,000 43.000 Warner Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000 Additional data: 1. Depreciation expense was $17.500. 2. Dividends declared and paid were $20,000. 3. During the year, equipment was sold for $8,500 cash. This equipment originally coat $18,000 and had accumulated depreciation of $9,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Instructions a. Prepare a statement of cash flows using the indirect method. a. Net cash provided-oper. act. $38,500 b. Compute tree cash flow. a