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

Balance Sheets
As of December 31
	Year 2				Year 1
Assets
Cash	$	24,000			$	2,601
Accounts receivable		2,210				1,326
Inventory		6,569				6,158
Equipment		20,088				42,778
Accumulated depreciationequipment		(9,041	)			(18,045	)
Land		15,795				8,895
Total assets	$	59,621			$	43,713
Liabilities and equity
Accounts payable (inventory)	$	2,777			$	4,487
Long-term debt		2,700				6,172
Common stock		22,000				10,500
Retained earnings		32,144				22,554
Total liabilities and equity	$	59,621			$	43,713

Income Statement
For the Year Ended December 31, Year 2
Sales revenue	$	36,750
Cost of goods sold		(14,566	)
Gross margin		22,184
Depreciation expense		(3,403	)
Operating income		18,781
Gain on sale of equipment		500
Loss on disposal of land		(100	)
Net income	$	19,181

Additional Data

1. During Year 2, the company sold equipment for $18,093; it had originally cost $30,000. Accumulated depreciation on this equipment was $12,407 at the time of the sale. Also, the company purchased equipment for $7,310 cash.

2. The company sold land that had cost $4,600. This land was sold for $4,500, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $11,500 at the time of exchange.

3. Paid dividends of $9,591.

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.)