Statement of cash flows—indirect method The following items were gathered from Daniels Distributing”s general ledger:

Purchase of marketable securities

$200,000

Depreciation and amortization expense

31,980

Declaration of preferred dividends

8,000

Decrease in Prepaid Assets

3,700

Gain on sale of equipment

5,200

Net income

429,800

Beginning Cash balance

43,740

Proceeds from loan

125,000

Payment for purchase of equipment

80,925

Increase in Accounts Receivable

16,760

Stock-based compensation

180,000

Proceeds from issuing common stock

25,000

Increase in Inventory

14,863

Decrease in Accounts Payable

13,900

Ending Cash balance

507,572

Required

Using the indirect method, construct Daniels Distributing”s statement of cash flows.