Use the following financial statements and additional information to prepare a statement of cash flows for the year ended December $31,2023$ using the indirect method.

Spring is Here, Inc.

Balance Sheets

At December $31$

$2023$

$2022$

Assets:

Cash

$$174,525$

$$65,200$

Accounts receivable, net

$52,850$

$56,750$

Merchandise inventory

$167,750$

$144,850$

Prepaid expenses

$16,080$

$12,680$

Equipment

$290,600$

$245,600$

Accumulated depreciation$-$Equipment

$(80,600)$

$(97,600)$

Total assets

$$621,205$

$$427,480$

Liabilities:

Accounts payable

$$55,270$

$$45,450$

Income taxes payable

$10,320$

$12,240$

Notes payable $($long term$)$

$59,200$

$79,200$

Total liabilities

$$124,790$

$$136,890$

Equity:

Common stock

$200,000$

$150,000$

Paid$-$in capital in excess of par

$53,000$

$40,000$

Retained earnings

$243,415$

$100,590$

Total equity

$$426,415$

$$290,590$

Total liabilities and equity

$$621,205$

$$427,480$

Spring is Here, Inc.

Income Statement

For Year Ended December $31,2023$

Sales

$$613,625$

Cost of goods sold

$$222,540$

Depreciation expense

$25,000$

Other operating expenses

$106,260$

Interest expense

$6,400$

$(360,200)$

Other gains $($losses$)$:

Gain on sale of equipment

$2,850$

Income before taxes

$256,275$

Income taxes expense

$30,525$

Net income

$$225,750$

Additional Information

a$.$ Cash dividends declared and paid were $$180,625.$

b$.$ New equipment is purchased for $$189,000$ cash.

c$.$ Received $$49,550$ cash for the sale of equipment.

d$.$ Issued new shares of stock receiving $$196,000$ cash.