Question 57 Based on the following information, prepare the cash flow statement using the indirect method. income statement Sales cost of goods sold salaries expense depreciation expense interest expense loss on equipment disposal net income 205,000 -97,000 -24,000 -16,000 -2,400 -2,500 63,100 6,000 Statement of Retained Earnings Beginning Balance - Retained Earnings Plus - Net Income Less - Dividends Ending Balance - Retained Earnings 63,100 (41,500) 27,600 Balance sheets 2018 2019 change Assets: Cash Accounts Receivable Inventory prepaid expenses Equipment Accum. Depr - Equipment total assets 13,000 25,000 19,000 0 60,000 (22,000) 95,000 64,600 19,000 13,000 0 41,000 (26,000) 111,600 51,600 (6,000) (6,000) 0 (19,000) (4,000) Liabilities: Accounts Payable accrued Liabilities Bonds Payable total liabilities 11,000 13,000 40,000 64,000 9,000 10,000 40,000 59,000 (2,000) (3,000) 0 Shareholders' Equity: Common Stock Retained Earnings total equity total liabilities and shareholder equity 25,000 6,000 31,000 25,000 27,600 52,600 0 21,600 95,000 111,600