Using financial statements to prepare a statement of cash flows—direct method The following financial statements were drawn from the records of Healthy Products Co.

Additional Data 1. During 2003, the company sold equipment for $6,800; it had originally cost $8,400. Accumulated depreciation on this equipment was $3,400 at the time of the sale. Also, the company purchased equipment for $5,000 cash.

2. The company sold land that had cost $2,000. This land was sold for $1,400, resulting in the recognition of a $600 loss. Also, common stock was issued in exchange for title to land that was valued at $7,000 at the time of exchange.
3. Paid dividends of $900.
Required Use the T-account method to analyze the data and prepare a statement of cash flows, using the direct method.