The balance sheets for Gels Company showed the following information. Additional information concerning transactions and events during 2022 are presented below.

Gels Company

Balance Sheets

December 31

2022 2021

Cash $ 30,900 $ 10,200

Accounts receivable (net) 43,300 20,300

Inventory 35,000 42,000

Long-term investments 0 15,000

Property, plant & equipment 236,500 150,000

Accumulated depreciation (37,700) (25,000)

$308,000 $212,500

Accounts payable $ 17,000 $ 26,500

Accrued liabilities 21,000 17,000

Long-term notes payable 70,000 50,000

Common stock 130,000 90,000

Retained earnings 70,000 29,000

$308,000 $212,500

Additional data:

1. Net income for the year 2022, $61,000.

2. Depreciation on plant assets for the year, $12,700.

3. Sold the long-term investments for $33,000.

4. Paid dividends of $20,000.

5. Purchased machinery costing $26,500, paid cash.

6. Purchased machinery and gave a $60,000 long-term note payable.

7. Paid a $40,000 long-term note payable by issuing common stock.

Required:

Prepare a statement of cash flows in proper form using the indirect method for 2022 for Gels Company. Show any calculations or reconstructed journal entries separately from the statement. Include any supplemental disclosures for which you have sufficient information.

Before you submit this, make sure you have spell-checked, numbered every problem by number and every part by letter, and followed all other requirements for submissions as noted in the instructions.