The comparative balance sheets and income statements for Gypsy Company follow.

Balance Sheets

As of December $31$

Year $2$ Year $1$

Assets

Cash $$22,860$ $$2,600$

Accounts receivable $1,7931,076$

Inventory $6,6046,191$

Equipment $19,42244,132$

Accumulated depreciation$$equipment $(5,166)(16,295)$

Land $20,38510,545$

Total assets $$65,898$ $$48,249$

Liabilities and equity

Accounts payable $($inventory$)$ $$2,744$ $$4,433$

Long$-$term debt $2,6466,048$

Common stock $24,40011,500$

Retained earnings $36,10826,268$

Total liabilities and equity $$65,898$ $$48,249$

Income Statement

For the Year Ended December $31,$ Year $2$

Sales revenue $$36,630$

Cost of goods sold $(14,519)$

Gross margin $22,111$

Depreciation expense $(3,170)$

Operating income $18,941$

Gain on sale of equipment $800$

Loss on disposal of land $(60)$

Net income $$19,681$

Additional Data

During Year $2,$ the company sold equipment for $$18,001$; it had originally cost $$31,500.$ Accumulated depreciation on this equipment was $$14,299$ at the time of the sale. Also, the company purchased equipment for $$6,790$ cash.

The company sold land that had cost $$3,060.$ This land was sold for $$3,000,$ resulting in the recognition of a $$60$ loss. Also, common stock was issued in exchange for title to land that was valued at $$12,900$ at the time of exchange.

Paid dividends of $$9,841.$

Required

Prepare a statement of cash flows using the indirect method.