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 Stuart Corporation follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 73,186 $ 41,480 Accounts receivable 29,086 21,330 Merchandise inventory 157,756 173,530 Prepaid rent 2,265 4,530 Equipment 252,030 286,380 Accumulated depreciation (147,060 ) (235,780 ) Land 188,930 77,430 Total assets $ 556,193 $ 368,900 Liabilities Accounts payable (inventory) $ 62,627 71,040 Salaries payable 25,795 22,110 Stockholders equity Common stock, $50 par value 251,500 199,500 Retained earnings 216,271 76,250 Total liabilities and equity $ 556,193 $ 368,900 Income Statement For the Year Ended December 31, Year 2 Sales $ 1,499,000 Cost of goods sold (796,669 ) Gross profit 702,331 Operating expenses Depreciation expense (22,230 ) Rent expense (28,520 ) Salaries expense (252,600 ) Other operating expenses (258,960 ) Net income $ 140,021 Other Information Purchased land for $111,500. Purchased new equipment for $95,900. Sold old equipment that cost $130,250 with accumulated depreciation of $110,950 for $19,300 cash. 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.)