The comparative balance sheets and income statements for Gypsy Company follow: Assets Cash Accounts receivable Balance Sheets As of December 31 Year 2 Inventory Equipment Accumulated depreciation-equipment Land Total assets Year 1 $ 32,500 $ 16,300 4,750 2,800 11,200 9,800 45,000 52,000 (21,80 (17,800 ) 0 28,000 12,000 103,65 $ 71,100 0 Liabilities and equity Accounts payable (inventory) S 3,750 $ 4,900 Long-term debt 5,800 7,800 Common stock Retained earnings Total liabilities and equity 47,000 25,000 47,100 33,400 103,65 $ $ 71,100 0 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 $ 61,200 (24,50 ) 0 36,700 (12,00 0 24,700 1,500 (100 $ 26,100 Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement).