Part A: prepare statement of cash flows using the indirect method.

Part B: interperet cash flows by explaining the main sources and uses of cash during the year

Prior Year $ 72,000 70,000 65,000 60,000 (15,000) $ 252,000 $ Current Year Balance Sheet Assets Cash $ 50,000 Accounts Receivable 80,000 Merchandise Inventory 60,000 Property and Equipment 110,000 Less: Accumulated Depreciation (30,000) Total Assets $ 270,000 Liabilities: Accounts Payable $ 10.000 Salaries and Wages Payable 2,000 Notes payable, Long-Term 50.000 Stockholders' Equity: Common Stock 100,000 Retained Earnings 108.000 Total Liabilities and Stockholders' Equity $ 270.000 Income Statement Sales $ 200.000 Cost of Goods Sold 110,000 Depreciation Expense 15.000 Other Expenses 50.000 Net Income $ 25.000 12.000 1.000 60,000 80.000 99.000 $ 252.000