the comparative balance sheet of Fox Company, for the current year and the preceding year ended December 31, appears below in condensed form: current year preceding year cash $45,000 $53,500 account receivable(net) 51,300 58,000 inventories 147200 135000 investments 0 60,000 equipment 493000 375,000 accumulated depreciation- equipment (113,700) (128,000) _________ _________ $622,800 $553,500 ========== =========== accounts payable $61,500 $42,600 bonds payable due 2008 100,000 common stock, $10 par 250,000 200,000 paid in capital in excess of par_common stock 75,000 50,000 retained earnings 236,300 160,900 ________ ________ $622,800 $553,500 The income statement for the current year is as follows sales 623,000 cost of merchandise sold 348,500 ------- gross profit 274,500 operating expenses: depreciation expense 24,700 other operating expenses 75,300 100,000 ------ ------- income from operations 174,500 Other income: Gain on sale of investment $5,000 Other expense: interest expense 12,000 (7,000) ------ ------- income before income tax $167,500 income tax 64,100 -------- net income $103,400 ========= Additional data for the current year are as follows a) fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000 b) bonds payable for $100,000 were retired by payment at their face amount c) 5,000 shares of common stock were issued at 15 for cash d) cash dividends declared and paid e) all sales are on account prepare a statement of cash flows, using the indirect method of reporting cash flows from operating activities