The comparative balance sheet of Green Earth Lawn and Garden Inc. for December 31, 2008 and 2009, is as follows:

 

Dec. 31, 2009

Dec. 31, 2008

Assets

 

 

Cash

$ 137,900

$142,300

Accounts receivable (net)

206,800

190,500

Inventories

290,500

284,100

Investments

0

90,000

Land

200,000

0

Equipment

255,000

205,000

Accumulated depreciation

(100,300)

(76,700)

 

$ 989,900

$835,200

Liabilities and Stockholders’ Equity

 

 

Accounts payable (merchandise creditors)

$ 224,900

$201,400

Accrued expenses (operating expenses)

14,100

16,500

Dividends payable

21,000

19,000

Common stock, $1 par

10,000

8,000

Paid in capital in excess of par—common stock

200,000

100,000

Retained earnings

519,900

490,300

 

$ 989,900

$835,200

The income statement for the year ended December 31, 2009, is as follows:

Sales

 

$940,000

Cost of merchandise sold

 

489,300

Gross profit

 

$450,700

Operating expenses:

 

 

Depreciation expense

$ 23,600

 

Other operating expenses

278,900

 

Total operating expenses

 

302,500

Operating income

 

$148,200

Other income:

 

 

Gain on sale of investments

 

32,000

Income before income tax

 

$180,200

Income tax expense

 

62,300

Net income

 

$117,900

The following additional information was taken from the records:

a. Equipment and land were acquired for cash.

b. There were no disposals of equipment during the year.

c. The investments were sold for $122,000 cash.

d. The common stock was issued for cash.

e. There was a $88,300 debit to Retained Earnings for cash dividends declared.

Instructions

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.