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The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year...

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Accounting

The comparative balance sheets and an income statement forRaceway Corporation follow.

Balance Sheets
As of December 31
Year 2Year 1
Assets
Cash$71,084$41,770
Accounts receivable30,36822,270
Merchandise inventory156,692172,360
Prepaid rent2,4604,920
Equipment260,140287,240
Accumulated depreciation(148,440)(239,840)
Land192,72080,320
Total assets$565,024$369,040
Liabilities
Accounts payable (inventory)$61,74670,040
Salaries payable33,36728,600
Stockholders’ equity
Common stock, $50 par value251,500198,500
Retained earnings218,41171,900
Total liabilities and equity$565,024$369,040
Income Statement
For the Year Ended December 31, Year 2
Sales$1,499,000
Cost of goods sold(796,669)
Gross profit702,331
Operating expenses
Depreciation expense(21,400)
Rent expense(24,340)
Salaries expense(251,660)
Other operating expenses(258,420)
Net income$146,511


Other Information

  1. Purchased land for $112,400.
  2. Purchased new equipment for $104,900.
  3. Sold old equipment that cost $132,000 with accumulateddepreciation of $112,800 for $19,200 cash.
  4. Issued common stock for $53,000.


Required
Prepare the statement of cash flows for Year 2 using the indirectmethod. (Amounts to be deducted should be indicated with aminus sign.)

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