The income statement and comparative balance sheets for Sterling Company are presented below:

Sterling Company
Income Statement
For the Year Ended December 31, 2015

Sales $586,000
Cost of goods sold 311,000
Depreciation expense 14,000
Amortization expense 3,000
Wage expense 88,000
Rent expense 24,000
Loss on sale of fixed assets 2,600
Interest expense 4,900
Income tax expense 56,000
Total expenses 503,500
Net income $82,500

December 31, 2014 December 31, 2015
Cash $16,300 $19,900
Accounts receivable 27,900 36,300
Inventory 53,900 48,200
Prepaid rent 1,800 2,000
Land 22,000 32,000
Fixed assets 118,000 130,000
Accumulated depreciation (39,000 ) (46,000 )
Patent 11,000 12,000
Total assets $211,900 $234,400
Accounts payable 21,100 27,700
Wages payable 5,700 6,200
Interest payable 400 1,600
Taxes payable 7,900 6,800
Bonds payable, due 2020 36,000 44,000
Common stock 32,000 35,000
Retained earnings 108,800 113,100
Total liabilities and
Stockholders' equity $211,900 $234,400

Required:
Prepare a statement of cash flows using the indirect method for the year ended December 31, 2015. No land was sold in 2015. Land was purchased using bonds payable for $8,000 and cash for $2,000. A fixed asset was sold in 2015 for $4,100. Purchases of fixed assets and patents were for cash.

Sterling Company
Statement of Cash Flows
For the year ended December 31, 2015
Cash flows from operating activities:
Net income $82,500
Add: depreciation expense 14,000
Add: amortization expense 3,000
Add: loss on sale of fixed assets 2,600
Less: Increase in accounts receivable (8,400 )
Add: Decrease in inventory 5,700
Less: Increase in prepaid rent (200 )
Add: Increase in accounts payable 6,600
Less: Decrease in taxes payable (1,100 )
Add: Increase in wages payable 500
Add: Increase in interest payable 1,200
Net cash provided by operating activities $106,400

Cash flows from investing activities:
Proceeds from sale of fixed asset $4,100
Purchase of fixed asset (25,700 )
Purchase land for cash (2,000 )
Purchase of patent (4,000 )
Net cash used by investing activities (27,600 )

Cash flows from financing activities:
Issued common stock 3,000
Paid dividends (78,200 )
Net cash used by financing activities (75,200 )
Increase in cash $3,600

Schedule of noncash transactions:
Issued long-term bonds payable to acquire land $8,000