please show the work so I can know where the numbers come from. I'm really trying to understand this chapter

1. On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000. th Year 2 Year 1 $ 90,000 $ 78,000 Cash se 78,000 85,000 Accounts Receivable (net) 106,500 90,000 Inventories 410,000 370,000 Equipment Accumulated Depreciation (150,000) (158,000 $534,500 $465,000 CI $ 55,000 { $ 53,500 Accounts Payable (merchandise creditors) 5,000 4,000 Cash Dividends Payable Common Stock, $10 par 200,000 170,000 62,000 60,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings 214,000 176,000 $534,500 $465,000