The comparative balance sheets for Riuki Company for 2020 and 2021 are as follows:

Riuki Company Balance sheet as at 31^st March

2021 2020

Assets Shs. Shs.

Land 96,000 40,000

Equipment at cost 128,000 144,000

Accumulated Depreciation (73,400) (118,000)

Merchandise Inventory 80,000 88,000

Accounts Receivable 15,000 11,000

Prepaid Rent 1,200 2,400

Cash 34,400 20,300

Total Assets 281,200 187,700

Stockholders Equity:

Common Stock, Shs25 Par Value 125,000 100,000

Retained Earnings 108,700 37,700

233,700 137,700

Liabilities

Accounts Payable (Inventory) 33,500 38,000

Salaries Payable 14,000 12,000

Total Liabilities 47,500 50,000

Total Stockholders Equity and Liabilities 281,200 187,700

Additional Information:

1. The company purchased land for Shs.50,000 within the current year.
2. Purchased new equipment for Shs. 50,000 in the current year.
3. In the current year, equipment that had an original cost of Shs.66,000 and an accumulated depreciation of Shs. 56,000 was sold for Shs.10,000 cash.
4. The company issued common stock for Shs.25,000.

Required:

Prepare a statement of cash flows for year 2021, using the indirect method.