Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.

The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $23,553 2,102 6,590 2,848 1,261 6,178 42,224 (16,430) 8,762 Accounts receivable Inventory Equipment Accumulated depreciation-equipment 19,644 (8,879) 18,102 Land $61,112 Total assets 44,843 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock 2,619 4,231 6,461 2,827 23,500 32,166 9,500 24,651 Retained earnings Total liabilities and equity $61,112 $44,843 Income Statement For the Year Ended December 31, Year 2 $ 30,270 (11,998) 18,272 (3,732) Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land 14,540 550 (60) 15,030 Net income Additional Data 1. During Year 2, the company sold equipment for $18,567; it had originally cost $29,300. Accumulated depreciation on this equipment was $11,283 at the time of the sale. Also, the company purchased equipment for $6,720 cash 2. The company sold land that had cost $4,660. This land was sold for $4,600, resulting in the recognition of a $60 loss. Also, common stock was issued in exchange for title to land that was valued at $14,000 at the time of exchange. 3. Paid dividends of $7,515 Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges $ 0 Cash flows from investing activities: Cash flows from financing activities: 0 0 Cash flows from financing activities: 0 $ 0 Ending cash balance Schedule of noncash investing and financing activities