Wu Company Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin $1,609,000 S 481,200 449400 Operating expenses (including depreciation expense of $46,800) Income from operations Other income (expenses) $ 31,800 Galn on sale of furniture and fiuxtures 7,000 Interest expense Income before income taxes Income taxes expense , Net income (23,200(16,200) 15,600 4,600 11,000 Wu Company Comparative Balance Sheets December 31,2011 and 2010 2011 2010 Assets Cash Accounts receivable (net) Merchandise inventory Prepald rent Furniture and ftures Accumulated depreclation-furniture and fixtures Total assets $164,800 50,000 165,200 200,000 350,000 450,000 2,0003,000 148,000 144,000 (24,000) 5788,000 $823,000 (42,000) Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long-term) Bonds payable o Common stock, par value Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $143,400 $200,400 4,400 40,000 20,000 100,000 200,000 240,000 200,000 181440 121,440 81,760 76,760 $788,000 $823,000 1400 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