Problem 16-6B Indirect: Statement of cash flows P2 P3 Satu Company's current-year income statement, comparative balance sheets, and additional information follow. For the year. (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit.(4) all debits to Accounts Payable reflect cash payments for inventory. (5) Other Expenses are cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. SATU COMPANY Comparative Balance Sheets Current Year Prior Year At December 3! Assets Cash Accounts receivable Total current assets Inventory Equipment Accum. depreciation--Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, ss par value Paid-in capital in excess of par, common stock Retained earnings $ 58,750 20,922 78.972 165,667 107.750 (46,700) $305.689 28.400 25.860 54,260 140,320 77.500 $241.080 $ 20,372 $157.530 6,100 163.630 22.472 40,000 68,000 05.000 20,000 32.100 125.219 SATU COMPANY Income Statement For Current Year Ended December 31 $750,800 269,200 481,600 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 15.700 Other expenses 173,933 Income before taxes Income taxes expense Net income 189,633 291,967 89,200 $202.767 Additional Information on Current-Year Transactions a. Purchased equipment for $30,250 cash. b. Issued 3,000 shares of common stock for $21 cash per share. c. Declared and paid $60,000 of cash dividends. Required Prepare a complete statement of cash flows using the indirect method for the current year. Check Cash from operating activities, $57,600