Statement of cash flows Indirect method The income statement and comparative balanon sheets for Chang Inc. are shown beow. The statement of retained earnings (not shown) indicates that Chang paid $168,000 in cash dividends during the year. The company uses the indirect method for preparing the statement of cash flows. Use the information provided in these financial statements to construct Chang's statement of cash flows. Complete the statement by entering the appropriate value. Note: Be sure to enter a negative sign for those values that represent a cash outflow. It is not necessary to enter a positive sign for a cash flow representing an inflow. Chang Inc. Balance Sheet As of December 31, Year 2 Increase Year 2 Year 1 Decrease Chang Inc Income Statement $75,520 $32,800 $42,720 For the Year Ending December 31, Year 2 Accounts receivable (net) 104,000 89,600 14,400 $2,800,000 Inventories 268,480 237,600 1,694,000 Property B equipment 551.312 493,920 57,392 Cost of goods sold 103,312 53,920 49,392 Accumulated depreciation Gross profit $1,106,000 Total assets operating expenses: $896,000 $800,000 $96,000 Depreciation expense $49,392 Liabilities other operating expenses 398,608 Accounts payable $116,480 $72,000 $44,480 446,000 Accrued wages payable 35,840 30,000 operating profit (EBIT) Acorued taxes payable 29,120 16,000 13,120 Interest expense 238,000 Bonds outstanding 132,160 202,000 -69,840 Earnings before taxes $420,000 Total liabilities $313,600 $320,000 6,400 Taxes 140,000 Stockholders' Equity $280,000 $88,400 $98,000 9,600 Retained earnings 494,000 382,000 112,000 Total stockholde rs' equity $582,400 $480,000 $102,400 Total liabilitiet s and equity $896,000 $800,000 $96,000