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 $160 $424 $264 Accounts receivable Merchandise inventory Equipment, net Total assets Accounts payable Salaries payable 480 320 (160) 160 480 320 2,880 3,360 480 $3,680 $4,584 $904 $440 $384 $(56) 80 40 (40) Bonds payable 960 1,280 320 Common stock (no-par) 1,760 1,920 160 Retained earnings 440 960 520 Total liabilities andstockholders' equity $3,680 $4,584 $904 Income Statement, For Year Ended December 31 Current Year Revenues $4,800 Cost of goods sold 2,720 Depreciation 640 Other expenses 616 Net income $824 Additional information for the current year 1. Equipment was sold for its book value of $800. 2. Equipment was purchased during the year for $1,920. 3. Dividends declared and paid were $304. 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 Cash flows from investing activities 0 0 Sale of equipment 0 Net cash provided (used) by investing activities Cash flows from financing activities 0 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 0 0 0 $ 0