The comparative balance sheets and income statements for Gypsy 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 $23,049 1,832 6,222 22,496 (9,861) 17, 264 $61,002 $ 2,611 1,099 5,833 43,576 (17,127) 10,914 $ 46,906 $ 2,601 2,769 18,000 37, 632 $61,002 $ 4,202 6,330 8,000 28, 374 $ 46,906 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 35, 160 Cost of goods sold (13,936) Gross margin 21,224 Depreciation expense (3,058) Operating income 18, 166 Gain on sale of equipment Loss on disposal of land Net income 400 (50 $ 18,516 Additional Data 1. During Year 2, the company sold equipment for $18.276; it had originally cost $28,200. Accumulated depreciation on this equipment was $10,324 at the time of the sale. Also, the company purchased equipment for $7,120 cash. 2. The company sold land that had cost $3,650. This land was sold for $3,600, resulting in the recognition of a $50 loss. Also, common stock was issued in exchange for title to land that was valued at $10,000 at the time of exchange. 3. Poid dividends of $9,258. Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Bows from operating activities Less Increases in current assets and Decreases in current liabilities Saved Plus: Noncash charges $ 0 Cash flows from investing activities: 0 Cash flows from financing activities. 0 0 Ending cash balance Schedule of noncash investing and financing activities 0