Using the income statement and balance sheets of Niagara Company below, prepare a statement of cash flows for the year ended December 31, Year 9, using the indirect method.

NIAGARA COMPANY Income Statement For Year Ended December 31, Year 9 Sales ................... $1.000 Cost of goods sold......... (650) Depreciation expense ...... (100) Sales and general expense.. (100) Interest expense ......... Income tax expense........ (40) Net income .............. (50) $ 60 NIAGARA COMPANY Balance Sheets December 31, Year 9 and Year 8 Year 8 Year 9 $ 520 770 Assets Cash ............. $ 50 Accounts receivable, net..... 500 Inventory ................. 750 Current assets............. 1,300 Fixed assets, net Total assets............... $1,800 1,350 550 $1,900 $ 75 710 Liabilities and Equity Notes payable to banks...... $ 100 Accounts payable .......... 590 Interest payable............ Current liabilities ......... ........ 700 Long-term debt ... Deferred income tax......... Capital stock. ............. Retained earnings.......... Total liabilities and equity.... $1,800 310 400 130 $1,900