Use the income statement below titled W2: Income Statement to prepare the statement of cash flows using the indirect method. During the year, the company also had a $750 decrease in accounts payable, a $200 increase in supplies, and a $1,000 decrease in accounts receivable. The company issued $4,000,000 of 10% bonds at face value and paid $14,000 in dividends to shareholders. ABC Corporation received $10,000 in cash for the investments sold. The cash balance at the beginning of the year was $460,900.

Income statement below:

Sales revenue

$122,300

Cost of merchandise sold

25,700

Gross profit

$ 96,600

Operating expenses:

Salaries expense

$35,000

Insurance expense

3

,800

Depreciation expense

7,700

Amortization expense

2,200

Total operating

expenses

48,700

Income from operations

$ 47,900

Other income and expenses:

Rent revenue

$10,000

Loss on

investments

2,200

$ 7,800

Net income

$ 55,700