Refer to Cemco Corporation's balance sheets presented in Problem 14-1A. The additional information about the company's activities during 1990 is identified as follows:

a. Net income was \(\$ 48,000\).

b. Accounts receivable decreased.

c. Merchandise inventory increased.

d. Accounts payable increased.

e. Income taxes payable decreased.

\(f\). Depreciation expense was \(\$ 7,200\).

g. Equipment was purchased for \(\$ 16,800\) cash.

\(h\). Twelve hundred shares of stock were issued for cash at \(\$ 12\) per share.

i. The company declared and paid \(\$ 24,000\) of cash dividends during the year.

\section*{Required}

Prepare a schedule that reconciles net income to the net cash provided or used by operating activities.

\section*{*Problem 14-4A \\ Cash flows working paper (indirect method) \\ (L.O. 1, 7)}

Problem 14-5A Statement of cash flows

(direct method)

(L.O. 1, 2, 4)