The income statement, balance sheets, and additional information for Communication Accessories are provided.

Additional Information for 2015:
1. Purchase additional investment in stocks for $95,000.
2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land.
3. Purchase $80,000 in equipment by borrowing $80,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. The company declares and pays a cash dividend of $200,000.

Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanyingfootnote.

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Communication Accessories Income Statement For the Year Ended December 31, 2015 S2,800,000 4.000 2.804.000 evenues Gain on sale ofland Total revenues Expenses Cost of goods sold Operating expense Depreciation expense Interest expense Income tax expense 1,900,000 575,000 38,000 16.000 63.000 2,592,000 S 212,000 I'otal expenses Net Income Communication Accessories Balance Sheets December 31 Assets 2015 2014 Current Assets Cash Accounts receivable Inventory Prepaid rent S182,000 S187,000 95,000 138,000 5,000 83,000 121,000 7,000 Long-Tem Assets 100.000 260.000 225,000 Accumulated depreciation (138,000) (100,000) S910,000 195,000 230,000 305.000 Investment in stock an Equipment Total Assets Liabilities and Stockholders' Equitv Current Liabilities S985,000 Accounts payable Interest payable Income tax payable S40,000 1,000 12,000 S58,000 2,000 10,000 Long-Tem Liabilities Notes payable 285,000 205,000 Stockholders Equity 350,000 285,000 Total Liabilities and Equity 985,000 S910,000 Common stock Retained earmings 350,000 297,000