The comparative balance sheets and an income statement for Raceway Corporation follow.

Balance Sheets

As of December $31$

Year $2$ Year $1$

Assets

Cash $ $6,300$ $ $48,400$

Accounts receivable $10,2007,260$

Inventory $45,20056,000$

Prepaid rent $7002,140$

Equipment $140,000144,000$

Accumulated depreciation $(73,400)(118,000)$

Land $116,00050,000$

Total assets $$245,000$ $$189,800$

Liabilities

Accounts payable $($inventory$)$ $ $37,200$ $ $40,000$

Salaries payable $12,20010,600$

Stockholders$$ equity

Common stock, $$50$ par value $150,000120,000$

Retained earnings $45,60019,200$

Total liabilities and equity $$245,000$ $$189,800$

Income Statement

For the Year Ended December $31,$ Year $2$

Sales $ $480,000$

Cost of goods sold $(264,000)$

Gross profit $216,000$

Operating expenses

Depreciation expense $(11,400)$

Rent expense $(7,000)$

Salaries expense $(95,200)$

Other operating expenses $(76,000)$

Net income $ $26,400$

Other Information

Purchased land for $$66,000.$

Purchased new equipment for $$62,000.$

Sold old equipment that cost $$66,000$ with accumulated depreciation of $$56,000$ for $$10,000$ cash.

Issued common stock for $$30,000.$

Required

Prepare the statement of cash flows for Year $2$ using the indirect method. $($Cash outflows should be indicated with a minus sign.$)$