The comparative balance sheet of Pell Company, for 2008 and the preceding year ended December 31, 2007, appears below in condensed form: Year Year 2008 2007 Cash $ 53,000 $ 50,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments ...... 70,000 Equipment 573,200 450,000 Accumulated depreciation-equipment (142,000) (176,000) $629,700 $542,000 Accounts payable $ 62,500 $ 43,800 Bonds payable, due 2010..... 100,000 Common stock, $10 par 325,000 285,000 Paid-in capital in excess of par-- Common stock 80,000 55,000 Retained earnings 162,200 58,200 $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Cost of merchandise sold 340,000 Gross profit $285,700 Operating expenses: Depreciation expense $26,000 Other operating expenses 68,000 94,000 Income from operations $191,700 Other income: Gain on sale of investment $ 4,000 Other expense: Interest expense 6,000 (2,000) Income before income tax $189,700 Income tax 60,700 Net income $129,000 Additional data for the current year are as follows: (a) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200. (b) Bonds payable for $100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at $13 for cash. (d) Cash dividends declared and paid $25,000. Prepare a statement of cash flows, using the indirect method of reporting cash flows from operating activities