Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect method. Please show the end result with the data. How do you use the indirect method and what calculations would be done? Also, why is the 2013 data pertinent if the cash flows are for 2014? Please show work.

Summer Peebles, Inc. Income Statement Year Ending December 31, 2014

Sales	$1,000.00
Cost of Goods Sold	-$650.00
Depreciation Expense	-$100.00
Sales and General Expense	-$100.00
Interest Expense	-$50.00
Income Tax Expense	-$40.00
Net Income	$60.00

Summer Peebles, Inc. Balance Sheets as of December 31, 2013 and 2014

Assets	2013	2014
Cash	$50.00	$60.00
Accounts Receivable, Net	$500.00	$520.00
Inventory	$750.00	$770.00
Current Assets	$1,300.00	$1,350.00
Fixed Assets, Net	$500.00	$550.00
Total Assets	$1,800.00	$1,900.00
Liabilities and Equity
Notes Payable to Banks	$100.00	$75.00
Accounts Payable	$590.00	$615.00
Interest Payable	$10.00	$20.00
Current Liabilities	$700.00	$710.00
Long-Term Debt	$300.00	$350.00
Deferred Income Tax	$300.00	$310.00
Capital Stock	$400.00	$400.00