The comparative balance sheet of Home and Hearth Inc. for December 31, 2009 and 2008, is as follows:

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 \(\$ 110,000\) cash.

d. The common stock was issued for cash.

e. There was a \(\$ 21,600\) 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.obj. 3

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Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation Dec. 31, 2009 Dec. 31, 2008 Assets $ 402,100 $ 424,600 354,200 342,100 631,900 614,200 0 150,000 325,000 0 550,000 425,000 (152,700) $2,110,500 (125,300) $1,830,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 482,400 Accrued expenses (operating expenses) 39,600 Dividends payable. 5,500 Common stock, $1 par 24,000 $ 467,800 44,200 4,000 20,000 Paid-in capital in excess of par-common stock 260,000 120,000 Retained earnings 1,299,000 1,174,600 $2,110,500 $1,830,600