Statement of Cash Flows (Indirect Method) Arctic Company's income statement and comparative balance sheets as of December 31 of 2 2012 follow: 013 and ARCTIC COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue Cost of Goods Sold $640,800 Wages Expense $873,600 228,000 Advertising Expense 37,200 Depreciation Expense 26,400 Interest Expense Gain on Sale of Land (30,000) 924,000 Net Loss 21,600 (50,400) ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash Accounts Receivable Inventory Prepaid Advertising Plant Assets $48,720 60,480 128,400 12,000 432,000 $33,600 60,000 135,600 15,600 266,400 ARCTIC COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $48,720 $33,600 60,000 128,400 135,600 15,600 432,000 266,400 93,600) (67,200) $588,000 $444,000 Accounts Receivable Inventory Prepaid Advertising Plant Assets Accumulated Depreciation Total Assets 60,480 12,000 Liabilities and Stockholders Equity Accounts Payable 20,400 $37,200 Interest Payable 7.200 240,000 294,000 294,000 62,400 12.800 (36,000) Bonds Payable Common Stock Retained Earnings Treasury Stock Total Liabilities and Stockholders' Equity $588,000 $444,000 During 2013, Arctic sold land for $84,000 cash that had originally cost $54,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases. Required