Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14.1. 14-3, 14-4 The comparative balance sheets and an income statement for Zachary Corporation follow Balance Sheets As of December 31 Year 2 Year 1 res Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Habilities Accounts payable (Inventory Salarles payable Stockholders' equity Common stock, 350 par value Retained earnings Total abilities and equity $ 61,760 30,885 155,965 2,425 260,500 (149,200) 196,030 $ 358,286 $ 41,860 22,650 171.560 4,050 289,600 (239,120) 54,00 $375,510 $ 67,124 32,515 76,140 27,670 253,000 205,647 $ 558.286 201,000 20.500 $ 375,510 Income Stateeent for the Year Ended Desember 31, Year 2 Sales $1,495,000 Cost of goods sold 294 543) Gross profit 700,457 Operating expenses Depreciation expense (24,740) Rent expense (27,250) Salaries expense (255,250) other operating expenses (253,070) Net Income $ 135,147 Other Information 1. Purchased land for $112.000. 2. Purchased new equipment for $104.300 3. Sold old equipment that cost $133.480 with accumulated depreciation of S114,580 for $18.900 cash 4. Issued common stock for $52000 1. Purchased land for $112,000. 2. Purchased new equipment for $104,300. 3. Sold old equipment that cost $133,480 with accumulated depreciation of $114,580 for $18,900 cash 4. Issued common stock for $52,000 Required Prepare the statement of cash flows for 2017 using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign.) ZACHARY CORPORATION Statement of Cash Flows For the Year Ended December 31 Year 2 Cash flows from operating activities Add Decrease in current assets and increases in current liabilities Los Increases in current assets and Decreases in current liabilities Plus Noncash charges 5 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 Ending cash balance $ 0