The comparative balance sheets and an income statement for Raceway Corporation follow Balance Sheets As of December 31 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity $ 6,300 10,200 45,200 700 140,000 (73,400) 116,000 $245,000 $ 48,400 7,260 56,000 2,140 144,000 (118,000) 50,000 $ 189,800 $ $ 37,200 12,200 40,000 10,600 150,000 45,600 $245,000 120,000 19,200 $ 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 Other Information 1. Purchased land for $66,000. Prev 1 of 1 Next 1. Purchased land for $66,000. 2. Purchased new equipment for $62,000. 3. Sold old equipment that cost $66,000 with accumulated depreciation of $56,000 for $10,000 cash. 4. Issued common stock for $30,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: | Plus: Increases in current assets and Decreases in current liabilities: Less: Increases in Current Assets and Decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Prev 1 of 1