The following is a condensed trial balance of Probe Co., a publicly held company, after adjustments for income tax expense.

Proe Co. Condensed Trial Balance

Accounts 12/31/Y10 Balances Dr. (Cr.) 12/31/Y9 Balances Dr. (Cr.)

Cash $484,000 $817,000 $(333,000)

Accounts receivable, net 670,000 610,000 60,000

Property, plant, and equipment 1,070,000 995,000 75,000

Accumulated depreciation (345,000) (280,000) (65,000)

Dividends payable (25,000) (10,000) (15,000)

Income taxes payable (60,000) (150,000) 90,000

Deferred income tax liability (63,000) (42,000) (21,000)

Bonds payable (500,000) (1,000,000) 500,000

Unamortized premium on bonds (71,000) (150,000) 79,000

Common stock (350,000) (150,000) (200,000)

Additional paid-in capital (430,000) (375,000) (55,000)

Retained earnings (185,000) (265,000) 80,000

Sales (2,420,000)

Cost of sales 1,863,000

Selling and administrative expenses 220,000

Interest income (14,000)

Interest expense 46,000

Depreciation 88,000

Loss on sale of equipment 7,000

Gain on extinguishment of bonds (90,000)

Income tax expense 105,000

Totals $0 $0

Additional Information - During year 10 equipment with an original cost of $50,000 was sold for cash, and equipment costing $125,000 was purchased. - On January 1, year 10, bonds with a par value of $500,000 and related premium of $75,000 were redeemed. The $1,000 face value, 10% par bonds had been issued on January 1, year 1, to yield 8%. Interest is payable annually every December 31 through year 20. - Probe's tax payments during year 10 were debited to Income Taxes Payable. Probe recorded a deferred income tax liability of $42,000 based on temporary differences of $120,000 and an enacted tax rate of 35% at December 31, year 9; prior to year 9 there were no temporary differences. Probe's year 10 financial statement income before income taxes was greater than its year 10 taxable income, due entirely to temporary differences, by $60,000. Probe's cumulative net taxable temporary differences at December 31, year 10, were $180,000. Probe's enacted tax rate for the current and future years is 35%. - 60,000 shares of common stock, $2.50 par, were outstanding on December 31, year 9. Probe issued an additional 80,000 shares on April 1, year 10. - There were no changes to retained earnings other than dividends declared.

Prepare a statement of cash flows using the indirect method. Complete the following with a statement of cash flows using the indirect method.

operating activities:

net income?/depreciation expense?/amortization of premium on bonds?/ loss on sale of equipment?/ gain on extinguishment on bonds?/ increase in accounts receivable?/ decrease in income taxes payable?/ increase in deferred taxes payable?

investing activities:

sale of equipment?/ purchase of equipment?

financing activities:

redeem bonds?/issue common stock?/payment of dividends?

net decrease in cash?/cash at the beginning of year?/cash at the ending of year?