The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.:

Cellular Telephone Sales Inc.

Comparative Balance Sheets

December 31st, 2019 and 2018

Assets 2019 2018

Cash $ 152,210 $ 102,000

Accounts Receivable, net 52,150 48,500

Merchandise inventory 60,000 70,000

Supplies on hand 3,500 5,100

Prepaid expenses 2,800 2,400

Land 360,000 285,000

Equipment 540,000 600,000

Accumulated depreciation-equipment (150,000) (135,000)

Total assets $ 1,020,660 $ 978,000

Liabilities and Stockholders Equity

Accounts payable $ 90,660 $ 152,600

Salaries Payable 8,000 4,000

Accrued liabilities payable 4,000 16,500

Long-term note payable 300,000 300,000

Common stock ($5 par) 370,000 330,000

Paid-in capital i excess par 65,000 0

Retained earnings 183,000 174,900

Total Liabilities and stockholders equity $ 1,020,660 $ 978,000

Additional Data

1. Land was bought for $75,000 cash. The company intends to build a building on the land. Currently, the company leases a building for its operations.
2. Equipment costing $100,000 with accumulated depreciation of $60,000 was sold for $47,000 (a gain of $7,000), and equipment costing $40,000 was purchased for cash.
3. Depreciation expense for the year was $75,000.
4. Common stock was issued for $105,000 cash.
5. Dividends declared and paid in 2019 totaled $65,900.
6. Net income was $74,000.
7. The company paid interest of $6,000 and income taxes of $34,000.

*I am not sure how to create a statement of cash flows for this problem using the indirect method.

*I also need help identifying and logging "necessary supplemental changes".

***Thank you for your help!