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

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
cash $45,000 $53,500
account receivable(net) 51,300 58,000
inventories 147200 135000
investments 0 60,000
equipment 493000 375,000
accumulated
depreciation- equipment (113,700) (128,000)
_________ _________
$622,800 $553,500

========== ===========

accounts payable $61,500 $42,600
bonds payable due 2008 100,000
common stock, $10 par 250,000 200,000
paid in capital in
excess of par_common stock 75,000 50,000
retained earnings 236,300 160,900
________ ________
$622,800 $553,500

The income statement for the current year is as follows

sales 623,000
cost of merchandise sold 348,500
-------
gross profit 274,500
operating expenses:
depreciation expense 24,700
other operating expenses 75,300 100,000
------ -------
income from operations 174,500
Other income:
Gain on sale of investment $5,000
Other expense:
interest expense 12,000 (7,000)
------ -------
income before income tax $167,500
income tax 64,100
--------
net income $103,400
=========

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 operating activities.

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