The comparative balance sheet of Fox Company, for the current year and the preceding year ended December 31, appears below in condensed form:

current year preceding year

Additional data for the current year are as follows
a) fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000
b) bonds payable for $100,000 were retired by payment at their face amount
c) 5,000 shares of common stock were issued at 15 for cash
d) cash dividends declared and paid
e) all sales are on account

prepare a statement of cash flows, using the indirect method of reporting cash flows from operatingactivities.

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cas account receivable(net) inventories nvestments equipment accumulated depreciation- equpment S45,000 51,300 147200 $53,500 58,000 135000 60.000 375,000 493000 (113,700) (128,000) S622,800 S553500 S42,600 100,000 200.000 accounts payable S61,500 250,000 2 75,000 bonds payable due 2008 common stock, S10 par paid in capital in 50,000 160,900 S622,800 S553.500 excess of par common stock retained eamings 236,300 The income statement for the current year is as follows 623.000 348,500 274,500 sales cost of merchandise sold gross profit operating expenses depreciation expense other operating expenses ncome from operations Other income Gain on sale of investment Other expense interest expense income before income tax ncome tax net income 24,700 100,000 174,500 75,300 $5,000 12,000(7,000) $167,500 64,100 S103,400