The comparative balance sheet of Air Glide Athletic Apparel Co. at December 31, 2008 and 2007, is as follows:

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2008 are as follows:
a. Net income, $81,300.
b. Depreciation reported on the income statement, $26,100.
c. Equipment was purchased at a cost of $50,900, and fully depreciated equipment costing $14,000 was discarded, with no salvage realized.
d. The mortgage note payable was not due until 2011, but the terms permitted earlier payment without penalty.
e. 5,000 shares of common stock were issued at $17 for cash.
f. Cash dividends declared and paid, $48,000.

Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

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Dec. 31, 2008 Dec. 31, 2007 Assets 45,800 70,200 100,500 4,200 204,700 (53,400) $372,000 $56,200 75,600 93,500 3,000 167,800 (41,300) 354,800 Accumulated depreciation-equipment . . . _ . . .. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) . . 78,200 15,000 180,000 98,800 $372,000 74,300 105,000 10,000 100,000 65,500 $354,800 Common stock, $1 par Paid-in capital in excess of par-common stock