TheFisheries Processing Corporation, a private corporation following ASPE,preparedthe following income statement and comparative balance sheet for 2019:

FISHERIES PROCESSING CORPORATION

Income Statement

Year Ended December 31, 2019

Sales$ 1,800,000

Cost of goods sold880,000

Gross profit920,000

Depreciation expense227,000

Other operating expenses197,000

Loss on sale of land...............................................................................................................120,000

Profit from operations..........................................................................................................376,000

Interest expense165,000

Profit before income tax......................................................................................................211,000

Income taxexpense70,800

Profit$ 140,200

FISHERIES PROCESSING CORPORATION

Comparative Balance Sheet

December 31

20192018

Assets

Cash$ 385,200$ 200,000

Accounts receivable640,000670,000

Merchandise inventory2,336,0002,090,000

Property, plant, and equipment880,000800,000

Less: Accumulated depreciation(787,000)(560,000)

Goodwill219,000219,000

Total Assets$ 3,673,200$ 3,419,000

Liabilities and Shareholders' Equity

Accounts payable$ 389,000$ 265,000

Other accrued payables160,000240,000

Dividends payable80,00080,000

Income taxes payable27,00042,000

Note payable (long-term)180,000560,000

Bonds payable900,000400,000

Common shares1,600,0001,600,000

Retained earnings337,200232,000

Total Liabilities & Shareholders' Equity$ 3,673,200$ 3,419,000

Additional data:

1.Equipment was purchased for $ 400,000in cash.

2.Land was sold for cash proceeds of $ 200,000.

3.The company sold bondsfor$ 500,000in cashand made $ 380,000 of principal paymentsin cashonthenotes payable.

4.Cash dividends were paid during the year.

Instructions:

Prepare cash flow statement forthe year ended December 31,2019using the indirect method.