Comparative statements of financial position for University Inc. appear below:                                                                  University INC.                                      Comparative Statements of Financial Position ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Assets                                                                                            Dec. 31, 2022                  Dec. 31, 2021 Cash.....................................................................................    $  29,000                        $10,000 Accounts receivable.............................................................        28,000                          19,000 Prepaid expenses................................................................          9,000                          12,000 Inventory...............................................................................       37,000                           54,000 Long-term investments........................................................                 0                          53,000 Equipment............................................................................      110,000                           48,000 Accumulated depreciation—equipment...............................    (26,000)                        (22,000)        Total assets...................................................................       $187,000                       $174,000   Liabilities and Shareholders' Equity Accounts payable.................................................................    $  21,000                        $  9,000 Mortgage payable................................................................         37,000                          45,000 Common shares...................................................................         40,000                          23,000 Retained earnings................................................................        89,000                           97,000        Total liabilities and shareholders' equity.......................    $187,000                       $174,000   Additional information regarding fiscal 2022: 1.    Net income for the year was $27,000. 2.    Cash dividends of $35,000 were declared and paid during the year. 3.    Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash.   Instructions Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2022.

Comparative statements of financial position for University Inc. appear below:

                                                               University INC.

                                     Comparative Statements of Financial Position

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Assets

                                                                                           Dec. 31, 2022                  Dec. 31, 2021

Cash.....................................................................................    $  29,000                        $10,000

Accounts receivable.............................................................        28,000                          19,000

Prepaid expenses................................................................          9,000                          12,000

Inventory...............................................................................       37,000                           54,000

Long-term investments........................................................                 0                          53,000

Equipment............................................................................      110,000                           48,000

Accumulated depreciation—equipment...............................    (26,000)                        (22,000)

       Total assets...................................................................       $187,000                       $174,000

Liabilities and Shareholders' Equity

Accounts payable.................................................................    $  21,000                        $  9,000

Mortgage payable................................................................         37,000                          45,000

Common shares...................................................................         40,000                          23,000

Retained earnings................................................................        89,000                           97,000

       Total liabilities and shareholders' equity.......................    $187,000                       $174,000

Additional information regarding fiscal 2022:

1.    Net income for the year was $27,000.

2.    Cash dividends of $35,000 were declared and paid during the year.

3.    Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash.

Instructions

Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2022.