The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $25,168 $ 2,706 Accounts receivable 1,543 926 Inventory 6,593 6,181 Equipment 15,921 40,631 Accumulated depreciation (5,922) (16,423) -equipment Land 16,608 8,348 Total assets $59,911 $ 42,369 Liabilities and equity. Accounts payable (inventory) Long-term debt Common stock $ 2,485 $ 4,015 2,738 6,259 21,600 9,500 Retained earnings 33,088 22,595 Total liabilities and $59,911 $ 42,369 equity Income Statement For the Year Ended December 31, Year Sales revenue 2 Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $ 39,140 (15,514) 23,626 (3,100) 20,526 500 (40) $ 20,986 Additional Data 1. During Year 2, the company sold equipment for $18,699; it had originally cost $31,800. Accumulated depreciation on this equipment was $13,601 at the time of the sale. Also, the company purchased equipment for $7,090 cash. 2. The company sold land that had cost $3,840. This land was sold for $3,800, resulting in the recognition of a $40 loss. Also, common stock was issued in exchange for title to land that was valued at $12,100 at the time of exchange. 3. Paid dividends of $10,493. Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)