Q1. The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form Year 2 Year 1 Cash $ 53,000 S 50,000 Accounts Receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments 70,000 Equipment 573,200 450,000 Accumulated Depreciation Equipment (142.000) (176,000 S629.700 S542.000 Accounts Payable $ 62,500 $ 43,800 Bonds Payable, Due Year 2 100,000 Common Stock, $10 par 325,000 285,000 Paid-In Capital in Excess of ParCommon Stock 80,000 55,000 Retained Famings 162,200 58.200 S629.700 S542.000 The income statement for the current year is as follows: Sales S625,700 Cost of merchandise sold 340.000 Gross profit $285,700 Operating expenses Depreciation expense $26,000 Other operating expenses 68.000 94,000 Income from operations $191,700 Other revenue and expense Gain on sale of investment $4,000 Interest expense (6.000) (2.000) Income before income tax $189,700 Income tax 60.700 Net income S129.000 Additional data for the current year are as follows: (a) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200 (b) Bonds payable for $100,000 were retired by payment at their face amount (c) 5,000 shares of common stock were issued at $13 for cash. (d) Cash dividends declared and paid, $25,000 Prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities