Year 1 The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Assets Cash $ 32,500 Accounts receivable 4,750 Inventory 11,200 Equipment 45,000 Accumulated depreciation equipment (17,800) Land 28,000 Total assets $103,650 Liabilities and equity Accounts payable (inventory) $ 3,750 Long-term debt 5,800 Common stock 47,000 Retained earnings 47,100 Total liabilities and equity $103,650 $ 16,300 2,800 9,800 52,000 (21,800) 12,000 $ 71,100 $ 4,900 7,800 25,000 33,400 $ 71,100 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 61,200 Cost of goods sold (24,500) Gross margin 36,700 Depreciation expense (12,000) Operating income 24,700 Gain on sale of equipment 1,500 Loss on disposal of land (100 Net income $ 26,100 Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement)