Presented here are the financial statements of Vaughn Company. Prepare a statement of cash flows using the indirect method. $($Show amounts that decrease cash flow with either a $-$ sign e$.$g$.-15,000$

or in parenthesis e$.$g$.(15,000).)$

VAUGHN COMPANY

Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$1$

$

$7$

$\left[\begin{array}{c}?\\ 2\end{array}\right]$

$]$

Additional data:

Depreciation expense was $$16,900.$

Dividends declared and paid were $$17,410.$

During the year, equipment was sold for $$9,500$ cash. This equipment originally cost $$17,800$ and had accumulated

depreciation of $$8,300$ at the time of sale.

Bonds were redeemed at their carrying value.

Common stock was issued at par for cash.