XYZ Corporations Year 2 and Year 1 balance sheets (not organized or classified) showed the following items:

	December 31	December 31
	Year 2	Year 1
Debits:
Cash	$27000	$21000
Accounts receivable	43000	49000
Merchandise inventory	113000	97000
Equipment	96000	81000
Total	279000	248000
Credits:
Accumulated depreciation - equipment	$25000	$16000
Common shares	135000	135000
Retained earnings	119000	97000
Total	279000	248000

Additional information about the corporations activities during Year 2 is as follow:

(1)

Sales (all on credit) $342000 Cost of goods sold $185000

Depreciation expense 9000

Other operating expense 108000 302000

Net income $40000

(2)The only decrease in accounts receivable were customer receipts.

(3) All merchandise purchase were for cash.

(4) The corporation declared and paid $18000 of cash dividends during the year.

Required:

Prepare a statement of cash flows that follows the indirect method.