The Pruitt Company$$s income statement and comparative balance sheets as of December $31$ of the current year and the previous year follow:

PRUITT COMPANY

Income Statement

For the Year Ended December $31$

Sales Revenue $$770,000$

Cost of Goods Sold $$450,000$

Wages and Other Operating Expenses $195,000$

Depreciation Expense $22,000$

Goodwill Amortization Expense $7,000$

Interest Expense $5,000$

Income Tax Expense $36,000$

Loss on Bond Retirement $5,000720,000$

Net Income $$50,000$

PRUITT COMPANY

Balance Sheets

Dec. $31,$ Current Year Dec. $31,$ Previous Year

Assets

Cash $$8,000$ $$19,000$

Accounts Receivable $43,00028,000$

Inventory $101,000131,000$

Prepaid Expenses $12,00011,000$

Plant Assets $360,000334,000$

Accumulated Depreciation $(87,000)(84,000)$

Goodwill $43,00050,000$

Total Assets $$480,000$ $$489,000$

Liabilities and Stockholders$$ Equity

Accounts Payable $$32,000$ $$28,000$

Interest Payable $3,0007,000$

Income Tax Payable $6,0008,000$

Bonds Payable $60,000100,000$

Common Stock $252,000248,000$

Retained Earnings $127,00098,000$

Total Liabilities and Stockholders$$ Equity $$480,000$ $$489,000$

During the year, the company sold for $$15,000$ cash old equipment that had cost $$34,000$ and had $$19,000$ accumulated depreciation. New equipment worth $$60,000$ was acquired in exchange for $$60,000$ of bonds payable. Bonds payable of $$100,000$ were retired for cash at a loss. A $$21,000$ cash dividend was declared and paid. All stock issuances were for cash.

Required

a$.$ Compute the change in cash that occurred in the current year.

b$.$ Prepare a statement of cash flows using the indirect method.$\backslash$table$[[$Net Income,,,$$,0$