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

Balance Sheets
As of December 31
	Year 2	Year 1
Assets
Cash	$22,225	$2,960
Accounts receivable	1,625	975
Inventory	6,305	5,911
Equipment	18,020	41,800
Accumulated depreciationequipment	(7,059)	(16,483)
Land	19,286	9,656
Total assets	$60,402	$44,819
Liabilities and equity
Accounts payable (inventory)	$2,494	$4,029
Long-term debt	2,649	6,055
Common stock	22,300	9,500
Retained earnings	32,959	25,235
Total liabilities and equity	$60,402	$44,819

Income Statement
For the Year Ended December 31, Year 2
Sales revenue	$31,260
Cost of goods sold	(12,390)
Gross margin	18,870
Depreciation expense	(3,901)
Operating income	14,969
Gain on sale of equipment	550
Loss on disposal of land	(70)
Net income	$15,449

Additional Data

During Year 2, the company sold equipment for $18,225; it had originally cost $31,000. Accumulated depreciation on this equipment was $13,325 at the time of the sale. Also, the company purchased equipment for $7,220 cash.

The company sold land that had cost $3,170. This land was sold for $3,100, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $12,800 at the time of exchange.

Paid dividends of $7,725.

Required Prepare a statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.)

GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities