1. Total for this question: 8 marks A Corporations' 2013 income statement and its comparative balance sheets for December 31, 2013 and 2012 are as follows: Income Statement For the Year Ended December 31, 2013 Sales 2,856,000 Cost of Goods Sold (1.576.300) Gross Margin 1,279,700 Operating Expenses and other Salaries (433,500) Utilities (64, 200) Interest (60,000) Depreciation (76,800) Loss on sale of Equipment (15.000) (649,500) Income before Income Tax 630,200 Income Taxes (240.000) Net Income 390,200 A Corporation Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets $ $ Cash 672,200 145,300 Accounts receivable (net) 219,600 175,600 Inventories 234,500 316,900 Land 1,300,000 300,000 Building and Equipment 900,000 856,000 Accumulated Depreciation on Building & Equipment (501.800) (435.000) Total Assets 2,824,500 1,358,800 Liabilities Accounts Payable 111,100 93,400 Utilities Payable 2,500 4,000 Interest Payable 5,000 Long-Term Note Payable 1,000,000 Stockholders' Equity Common Stock, $1 par value 300,000 250,000 Paid in Capital in excess of par 560,000 450,000 Retained Earnings 845,900 561,400 Total Liabilities and Stockholders' Equity 2,824,500 1,358,800 Additional information about transactions and events occurring in 2013 is as follows: Dividends of $105,700 were declared and paid. Accounts payable and receivable relate solely to purchases and sales of inventory. The increase in land resulted from the purchase of land via issuance of the long-term note payable. No buildings were purchased or sold. Equipment was purchased. In January of 2013, equipment with an original cost of $75,000 was sold for $50,000. The increase in paid-in capital all resulted from issuing additional shares for cash 1. Use the indirect method to prepare a Statement of Cash Flows