The comparative balance sheets and income statements for Gypsy Company follow:
Income Statement
For the Year Ended December 31, 2017
Sales revenue……………………………… $ 61,200
Cost of goods sold………………………… (24,500)
Gross margin………………………………… 36,700
Depreciation expense……………………… (12,000)
Operating income…………………………… 24,700
Gain on sale of equipment…………………… 1,500
Loss on disposal of land……………………… (100)
Net income……………………………….. $ 26,100
Additional Data
1. During 2017, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. Also, the company purchased equipment for $29,000 cash.
2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, was issued in exchange for title to land that was valued at $22,000 at the time of exchange.
3. Paid dividends of $12,400.
Required
Prepare a statement of cash flows using the indirect method.
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