The comparative balance sheets and an income statement for Raceway Corporation follow:

Income Statement
For the Year Ended December 31, 2017
Sales .............. $ 480,000
Cost of goods sold ......... (264,000)
Gross profit ........... 216,000
Operating expenses
Depreciation expense ........ (11,400)
Rent expense ........... (7,000)
Salaries expense .......... (95,200)
Other operating expenses ....... (76,000)
Net income ........... $ 26,400
Other Information
1. Purchased land for $66,000.
2. Purchased new equipment for $62,000.
3. Sold old equipment that cost $66,000 with accumulated depreciation of $56,000 for $10,000 cash.
4. Issued common stock for $30,000.
Required
Prepare the statement of cash flows for 2017 using the indirect method.

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Balance Sheets As of December 31 Assets Cash Accounts receivable Merchandise inventory Prepaid remt Equipment Accumulated depreciation $ 6,300 10,200 45,200 700 140,000 S 48,400 7,260 56,000 2,140 144,000 (73,400) (118,000) 50,000 $189,800 116,000 $245,000 Total assets Liabilities Accounts payable (inventory) Salaries payable 37,200 12,200 40,000 10,600 Stockholders' equity Common stock, $50 par value Retained earmings 150,000 45,600 $245,000 120,000 19,200 $189,800 Total liabilities and equity