Raccoon Collectables provided the following balance sheet and income statement information:

Using the financial data for Raccoon Collectables, prepare the statement of cash flow using the indirect method for Year 2.

Balance Sheet at December 31 Cash Accounts receivable Inventory Prepaid insurance Equipment, net Total assets Year 2 $ 1,400 13,500 11,800 1,200 36,500 $64.400 Year 1 $ 7,200 12,000 4,500 900 38,000 $62.600 Accounts payable Wages payable Long-term note payable Common stock Retained earnings Total liabilities & shareholders' equity $ 13,100 7,400 17,000 16,000 10,900 $64.400 $ 12,600 8,000 26,700 8,000 7,300 $62.600 Income Statement for Year 2 Sales $ 121,800 Cost of goods sold 49,500 Depreciation expense 6,800 Other operating expenses 27,800 Interest expense 2,100 Income taxes expense 8,000 Net income $ 27,600