Preparing a Statement of Cash Flows

Erie Company reported the following comparative balance sheets:

	2019		2018
Assets:
Cash	$33,200		$12,750
Accounts receivable	53,000		44,800
Inventory	29,500		27,500
Prepaid rent	2,200		6,200
Investments (long-term)	17,600		31,800
Property, plant, and equipment	162,000		149,450
Accumulated depreciation	(61,600)		(56,200)
Total assets	$235,900		$216,300
Liabilities and Equity:
Accounts payable	$16,900		$19,500
Interest payable	3,500		4,800
Wages payable	9,600		7,100
Income taxes payable	5,500		3,600
Notes payable	27,600		53,000
Common stock	100,000		68,500
Retained earnings	72,800		59,800
Total liabilities and equity	$235,900		$216,300

Additional Information:

1. Net income for 2019 was $19,200.
2. Cash dividends of $6,200 were declared and paid during 2019.
3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additional long-term investments were purchased for $14,400 cash.
4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for $3,800 cash. New equipment was purchased for $27,350 cash.
5. Depreciation expense was $18,900.
6. A principal payment of $25,400 was made on long-term notes.
7. Common stock was sold for $31,500 cash.

Required:

Prepare a statement of cash flows for Erie, using the indirect method to compute net cash flow from operating activities. Use a minus sign to indicate any decreases in cash or cash outflows. If an answer is zero, enter "0".

Cash flows from operating activities:
Increase in income taxes payableIncrease in inventoryIncrease in wages payableNet incomePayment of dividendsProceeds from issuance of common stock		$- Select -
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expenseProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	$- Select -
Decrease in wages payableGain on sale of investmentsProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipmentRepayment of long-term note	- Select -
Decrease in wages payableGain on sale of equipmentProceeds from issuance of common stockProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipment	- Select -
Decrease in accounts receivableDecrease in wages payableIncrease in accounts receivableProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipment	- Select -
Increase in accounts payableIncrease in inventoryNet incomePayment of dividendsProceeds, sale of equipmentPurchase of equipment	- Select -
Decrease in prepaid rentDecrease in wages payableProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	- Select -
Decrease in accounts payableIncrease in accounts payableProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	- Select -
Decrease in interest payableProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	- Select -
Increase in wages payableProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	- Select -
Increase in income taxes payableProceeds from sale of investmentsProceeds, sale of equipmentPurchase of equipmentPurchase of investmentsRepayment of long-term note	- Select -	- Select -
Net cash provided by operating activities			$fill in the blank 24
Cash flows from investing activities:
Gain on sale of equipmentIncrease in accounts receivableIncrease in income taxes payableIncrease in inventoryIncrease in wages payableProceeds from sale of investments		$- Select -
Decrease in accounts payableDecrease in interest payableDecrease in prepaid rentDepreciation expenseGain on sale of investmentsPurchase of investments		- Select -
Decrease in accounts payableDecrease in interest payableDepreciation expenseGain on sale of equipmentGain on sale of investmentsProceeds, sale of equipment		- Select -
Decrease in prepaid rentIncrease in accounts receivableIncrease in income taxes payableIncrease in inventoryIncrease in wages payablePurchase of equipment		- Select -
Net cash used for investing activities			fill in the blank 33
Cash flows from financing activities:
Decrease in prepaid rentDepreciation expenseGain on sale of equipmentGain on sale of investmentsIncrease in accounts receivablePayment of dividends		- Select -
Depreciation expenseGain on sale of equipmentGain on sale of investmentsIncrease in accounts receivableIncrease in income taxes payableRepayment of long-term note		- Select -
Depreciation expenseGain on sale of equipmentGain on sale of investmentsIncrease in accounts receivableProceeds from income taxes payableProceeds from issuance of common stock		- Select -
Net cash used for financing activities			fill in the blank 40
Decrease in prepaid rentDepreciation expenseGain on sale of equipmentIncrease in income taxes payableNet increase (decrease) in cashNet loss in cash amount			$- Select -
Cash, 1/1/2019			fill in the blank 43
Cash, 12/31/2019			$fill in the blank 44