Wu Company

Income Statement

For the Year Ended December $31,2022$

Sales

Cost of goods sold

Gross margin

Operating expenses $($including depreciation

expense of $$46,800)$

Income from operations

Other income $($expenses$)$

Gain on sale of furniture

Interest Expense

income before income taxes

Income tax expense

Net Income

Wu Company

Comparative Balance Sheets

December $31,2022$ and $2021$

Additional information

A$.$ Sold Furniture with an original cost of $$35,600,$ at a gain of $$7000$

B$.$ Purchased Furniture in the amount of $$39,600$

C$.$ Paid $$20,000$ on an existing note payable

D$.$ Borrowed $$40,000$ on a new note

E$.$ No new bonds were issued during the period

F$.$ New stock was issued for cash

Prepare a statement of cash flows for Wu using the indirect method.