14. The financial statements for the JHJ Book Store are as follows: INCOME STATEMENT 2013 Sales Cost of Books Sold Gross Profit Operating Expenses Depreciation 2,000,000 500.000 1,500,000 200,000 100.000 300,000 1.200,000 Net Income From Operation Gain on Sale Land Net Income I 300,000 1.500.000 BALANCE SHEET 2013 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Investment in Land Total Assets 2012 100,000 75,000 150,000 100,000 (25,000) 100,000 500.000 2013 1,325,000 50,000 550,000 600,000 (125,000 0 2.400000 Accounts Payable Long Term Bond Payable Total Liabilities 100,000 0 10,0,0,00 0 500,000 500.000 Common Stock Retained Earnings Total Stockholders 100,000 300,000 400.000 200,000 1.700,000 1.900.000 Total Liabilities + Stockholders Equity 500.000 2,400,000 INDIRECT METHOD NET CHANGE SOURCE AMOUNT ITEM ITEM USE AMOUNT I. CASH FLOWS FROM OPERATIONS NET LOSS NET INCOME DEPR EX DECREASES IN CURRENT ASSET INCREASES IN CURRENT ASSET I INCREASES IN CURRENT LIAB DECREASES IN CURRENT LIAB LOSS ON SALE OF LT ASSET Gain ON SALE OF LT ASSET TOTALS PARTI CASH PROCEEDS FROM SALE OF LONGTERM ASSET II. CASH FLOWS FROM INVESTMENTS PURCHASE OF LONGTERM ASSEST TOTALS PART II ISSUANCE OF STOCK III. CASH FLOWS FROM FINANCING PURCHASE OF TREASURY STOCK RECEIPT OF LT LOAN REPAYMENT OF LT LOAN I TOTALS PART III PAYMENT OF DIVIDENDS BEGINNING CASH BALANCE IV. CHANGE IN CASH FLOW LESS ENDING CASH BALANCE