See the balance sheet and income statement for Hailey Singers Inc. Balance Sheet Assets Current Year Prior Year Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets $ 87,300 $ 107,100 116,000 101,500 87,000 94,250 164,000 87,000 (46,960) (24,000) $ 407,340 $365,850 Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net income $ 14,500 $ 17,400 2,900 1,450 72,500 87,000 136,000 116,000 181,440 144,000 $ 407,340 $365,850 $380,000 200,000 22,960 95,000 $ 62,040 Additional information: a.Bought equipment for cash, $77,000. b.Paid $14,500 on long-term note payable. c. Issued new shares of common stock for $20,000 cash. d.Cash dividends of $24,600 were declared and paid to stockholders. e.Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($15,510) and interest expense ($4,350) were paid in full at the end of both years and are included in Other Expenses. Required: a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.) Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net income $ 62,040 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 22,960 Changes in current assets and current liabilites: Accounts Receivable (14,500) Inventories Accounts Payable Salaries and Wages Payable Cash paid for income tax Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Additions to Property, Plant, and Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities: Proceeds from issuance of Stock Payment of cash dividends Payments on long-term debt. Cash paid for interest Net Cash Used in Financing Activities Increase in Cash and Cash Equivalents Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period $ 70,500 $ $ 0 0