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 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Elabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity $ 64,031 28,868 158,147 2,335 257.800 (141,790) 196,070 $ 565, 461 $ 41.950 21,170 173,960 4,670 288,620 (233,590) 82,870 $ 379,650 $ 63,377 33,157 71,890 28, 420 248.000 220,927 5 565,461 201.000 78,340 $ 379,650 Income Statement For the Year Ended December 31, Year 2 Sales $1,495,000 Cost of goods sold (294,543) Gross profit 700,457 Operating expenses Depreciation expense (20, 420) Rent expense (23,460) Salaries expense (256,340) Other operating expenses (257,650) Net Income $ 142,587 Other Information 1. Purchased land for $113,200. 2. Purchased new equipment for $102,100. 3. Sold old equipment that cost $132,920 with accumulated depreciation of $112,220 for $20,700 cash. 4. Issued common stock for $47.000. Required Prepare the statement of cash flows for 2017 using the Indirect method. (Amounts to be deducte 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: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges S 0 Cash flows from investing activities: Cash flows from financing activities: 0 Ending cash bal