The comparative balance sheets and an income statement for Thornton Corporation follow:

Balance Sheets

As of December $31$

Year $2$ Year $1$

Assets

Cash $$68,312$ $$40,770$

Accounts receivable $32,16823,590$

Merchandise inventory $157,902173,690$

Prepaid rent $2,4154,830$

Equipment $261,160289,760$

Accumulated depreciation $(145,820)(236,080)$

Land $196,02082,820$

Total assets $$572,157$ $$379,380$

Liabilities

Accounts payable $($inventory$)$ $$66,55075,490$

Salaries payable $27,45223,530$

Stockholders$$ equity

Common stock, $$50$ par value $255,000202,000$

Retained earnings $223,15578,360$

Total liabilities and equity $$572,157$ $$379,380$

Income Statement

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

Sales $$1,503,000$

Cost of goods sold $(798,795)$

Gross profit $704,205$

Operating expenses

Depreciation expense $(24,440)$

Rent expense $(28,140)$

Salaries expense $(250,640)$

Other operating expenses $(256,190)$

Net income $ $144,795$

Other Information

Purchased land for $$113,200.$

Purchased new equipment for $$104,700.$

Sold old equipment that cost $$133,300$ with accumulated depreciation of $$114,700$ for $$18,600$ cash.

Issued common stock for $$53,000.$

Required

Prepare the statement of cash flows for Year $2$ using the indirect method.

Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.