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The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 32,500

The comparative balance sheets and income statements for Gypsy Company follow:

Balance Sheets
As of December 31
Year 2 Year 1
Assets
Cash $ 32,500 $ 16,300
Accounts receivable 4,750 2,800
Inventory 11,200 9,800
Equipment 45,000 52,000
Accumulated depreciationequipment (17,800 ) (21,800 )
Land 28,000 12,000
Total assets $ 103,650 $ 71,100
Liabilities and equity
Accounts payable (inventory) $ 3,750 $ 4,900
Long-term debt 5,800 7,800
Common stock 47,000 25,000
Retained earnings 47,100 33,400
Total liabilities and equity $ 103,650 $ 71,100

Income Statement
For the Year Ended December 31, Year 2
Sales revenue $ 61,200
Cost of goods sold (24,500 )
Gross margin 36,700
Depreciation expense (12,000 )
Operating income 24,700
Gain on sale of equipment 1,500
Loss on disposal of land (100 )
Net income $ 26,100

Additional Data

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. Also, the company purchased equipment for $29,000 cash.

The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange.

Paid dividends of $12,400.

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.)

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Required Prepare s statement of cosh flows using the indirect method. (Amounts to be deducted and cash outflows should be Indicated by a minus sign.) Required Prepare s statement of cosh flows using the indirect method. (Amounts to be deducted and cash outflows should be Indicated by a minus sign.)

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