The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012 is shown as follows:
Assets:
Dec 31st, 2013 Dec 2012
Cash $234,660 $219,720
Accounts receivables 85,440 78,360
Inventories 240,660 231,420
Investements 0 90,000
Land 123,000 0
Equipment 264,420 207,420
Accumulated Depreciation-Equipment (62,400) (55,500)
885,780 771,420
Liabilities and Stockholders Equity
Accounts payable (merchandise Creditor) 159,180 151,860
Accrued expensies payable (operations expenses) 15,840 19,740
Dividends payable 9,000 7,200
Common stock $1par 48,000 36,000
Paid in capital excess of par -common stock 180,000 105,000
Retained earnings 473,760 451,620
885,780 771,420
The following additional information was taken from the records:
- The investments were sold for $105,000 cash
- Equipment and land were acquired for cash
- There were no disposals of equipment during the year
- Common stock was issued for cash
- There was a $ 58,140 credit to retained earnings for net income
- There was a $ 36,000 debit to retained earnings for cash dividends declared.
Required:
Prepare a statement of cash flows using the INDIRECT and DIRECT methods of presenting cash flows from operating activities