The comparative balance sheets and income statements for Baird Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash 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 $ 25,420 2,027 6,436 20,425 (11,304) 21,379 $ 64,383 $ 2,561 1,216 6,034 41,605 (17,586) 10,369 $ 44,199 $ 2,750 2,682 26,900 32,051 $ 64,383 $ 4,442 6,131 12,000 21,626 $ 44,199 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 39,630 Cost of goods sold (15,708) Gross margin 23,922 Depreciation expense (3,681) Operating income 20,241 Gain on sale of equipment 700 en dienen of land TOD Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 39,630 Cost of goods sold (15.708) Gross margin 23,922 Depreciation expense (3,681) Operating income 20, 241 Gain on sale of equipment 700 Loss on disposal of land (90) Net income $ 20,851 Additional Data 1. During Year 2. the company sold equipment for $18,937; it had originally cost $28,200. Accumulated depreciation on this equipment was $9,963 at the time of the sale. Also, the company purchased equipment for $7,020 cash 2. The company sold land that had cost $3,890. This land was sold for $3,800, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $14,900 at the time of exchange. 3. Pald dividends of $10.426. Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) BAIRD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increase/Decrease in current assets and current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities