Teresa Ramirez and Lenny Traylor are examining the following statement of cash flows for Indigo Clothing Store's first year of operations. INDIGO CLOTHING STORE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JANUARY 31, 2020 Sources of cash From sales of merchandise $383,500 From sale of common stock 381,500 From sale of investment 110,500 From depreciation 75,000 From Issuance of note for truck 29,000 From interest on investments 7,800 Total sources of cash 987,300 Uses of cash For purchase of fixtures and equipment 327,000 For merchandise purchased for resale 255,000 For operating expenses (including depreciation) 165,500 For purchase of investment 94,500 For purchase of truck by issuance of note 29,000 For purchase of treasury stock 12,000 For interest on note 2,900 Total uses of cash 885,900 Net Increase in Cash $101,400 Teresa claims that Indigo's statement of cash flows is an excellent portrayal of a superb first year, with cash increasing $101,400. Lenny replies that it was not a superb first year-that the year was an operating failure, the statement was incorrectly presented, and $101,400 is not the actual increase in cash. With whom do you agree, Teresa or Lenny? Using the data provided, prepare a statement of cash flows in proper indirect method form. The only noncash items in income are depreciation and the gain from the sale of the investment (purchase and sale are related). (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15, 000).) INDIGO CLOTHING STORE Statement of Cash Flows Adjustments to reconcile net income to Supplemental disclosures of cash flow information