The comparative balance sheets and income statements for Adams Company follow: Balance Sheets Assets Cash As of December 31 Year 2 Year 1 $23,918 1,963 6,235 $2,858 1,178 5,845 Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $31,190 (12,362) 18,828 (3,228) 15,600 500 (80) $16,020 21,472 (11,466) 19,852 43,042 (18,109) 10,932 $61,974 $45,746 $2,731 2,956 $4,412 6,757 23,200 33,087 9,500 $61,974 25,077 $45,746 Additional Data 1. During Year 2, the company sold equipment for $18,829; it had originally cost $28,200. Accumulated depreciation on this equipment was $9,871 at the time of the sale. Also, the company purchased equipment for $6,630 cash. 2. The company sold land that had cost $4,780. This land was sold for $4,700, resulting in the recognition of a $80 loss. Also, common stock was issued in exchange for title to land that was valued at $13,700 at the time of exchange. 3. Paid dividends of $8,010. Required Prepare a statement of cash flows using the indirect method. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign. ADAMS COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net income Less: Increase/Decrease in current assets and current liabilities: Increase in accounts receivable Increase in inventory Decrease in accounts payable Plus: Noncash charges Depreciation expense Plus: Loss on disposal of land Plus: Gain on sale of equipment Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities: 0 0 $ 0 $ ES 0 0