STATEMENT OF CASH FLOWS

The Group, Inc.

Consolidated Balance Sheets

(in thousands)

	Dec. 31, Year 2	Dec. 31, Year1
ASSETS
Current assets:
Cash and cash equivalents	$ 92,069	$ 72,634
Accounts receivables, net	55,947	75,492
Inventories	50,784	53,129
Prepaid expenses	12,112	13,057
Total current assets	210,912	214,312
Equipment	145,444	134,312
Less: Accumulated depreciation	(50,515)	(36,689)
Total assets	$305,841	$311,935

LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable	$ 25,466	$ 34,879
Accrued liabilities	40,574	40,722
Total current liabilities	66,040	75,601
Long-term debt	10,422	10,206
Stockholders equity:
Contributed capital	1,662	1,284
Retained earnings	227,717	224,844
Total stockholders equity	229,379	226,128
Total liabilities and stockholders equity	$305,841	$311,935

Consolidated Statement of Income
	Year 2
Net sales	$130,896
Cost of sales	74,040
Gross profit	56,856
Operating expenses:
Selling, general & administrative expenses	33,211
Depreciation expense	13,826
Total operating expenses	47,037
Operating income	9,819
Interest income	239
Income before income taxes	10,058
Income tax expense	3,621
Net income	$ 6,437

Additional Information: See below.

The Group, Inc. did not sell any equipment but purchased equipment in the amount of $11,132. The company issued debt in the amount of $216 and did no repay any borrowings during the year ended December 31, Year 2. The company declared and paid dividends in the amount of $3,564 during the year ended December 31, Year 2. Also, the company issued stock in the amount of $378.

Using the information provided above, prepare a statement of cash flows using the indirect method.