Question 40 (3 points) On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Current year Prior yeat $ 65,000 $ 54,000 Cash 78,000 85,000 Accounts receivable (net) 106,500 90,000 Inventories 20,000 Land 495,000 370,000 Equipment (215,000) (158.000) Accumulated depreciation SS29,500 $461,000 $ 53,300 $ 55,000 Accounts payable (merchandise creditors) 200,000 170,000 Common stock, $10 par 62,000 60,000 Paid-in capital in excess of par--common stock 214.000 176.000 5461,000 Retained earnings 5529,500