Pete Kent and Maria Robles are examining the following statement of cash flows for Riverbed Corp for the year ended January 31, 2022.

Riverbed Corp

Statement of Cash Flows

For the Year Ended January 31, 2022

Sources of cash

From sales of merchandise

$385,410

From sale of capital stock

404,680

From sale of investment (purchased below)

79,950

From depreciation

54,930

From issuance of note for truck

20,010

From interest on investments

5,969

Total sources of cash

950,949

Uses of cash

For purchase of fixtures and equipment

318,310

For merchandise purchased for resale

257,359

For operating expenses (including depreciation)

171,570

For purchase of investment

74,960

For purchase of truck by issuance of note

20,010

For purchase of treasury stock

9,950

For interest on note payable

3,004

Total uses of cash

855,163

Net increase in cash

$95,786

Pete claims that Riverbed Corps statement of cash flows is an excellent portrayal of a superb first year with cash increasing $95,786. Maria replies that it was not a superb first year. Rather, she says, the year was an operating failure, that the statement is presented incorrectly, and that $95,786 is not the actual increase in cash. The cash balance at the beginning of the year was $140,560.

(a) Using the data provided, prepare a statement of cash flows in proper form using the indirect method. The only noncash items in the income statement are depreciation and the gain from the sale of the investment. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)