Preparing Statement of Cash Flows The accounting records of Zale Inc. provided the following data for the current year. Balance Sheet, December 31 Prior Year Current Year Difference Cash $300 $795 $495 Accounts receivable 900 600 (300) Merchandise inventory 300 900 600 Equipment, net 5,400 6,300 900 Total assets Accounts payable Salaries payable $6,900 $8,595 $1,695 $825 $720 $(105) 150 75 (75) Bonds payable 1,800 2,400 600 Common stock (no-par) 3,300 3,600 300 Retained earnings 825 1,800 975 Total liabilities andstockholders' equity $6,900 $8,595 $1,695 Income Statement, For Year Ended December 31 Current Year Revenues $9,000 Cost of goods sold 5,100 Depreciation 1,200 Other expenses 1,155 Net income $1,545 Additional information for the current year 1. Equipment was sold for its book value of $1,500. 2. Equipment was purchased during the year for $3,600. 3. Dividends declared and paid were $570. Required Prepare the current year statement of cash flows following the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities Net income Adjustments: $ 0 0 Decrease in accounts receivable Increase in merchandise inventory 0 0 Decrease in accounts payable 0 Decrease in salaries payable 0 Net cash provided (used) by operating activities 0 Cash flows from investing activities Sale of equipment Net cash provided (used) by investing activities Cash flows from financing activities Issuance of common stock Cash paid for dividends Net cash provided (used) by financing activities Net increase in cash during the year Cash, January 1 Cash, December 31 0 0 0 2. 0 0 0 0 0 0 +A $ 0