A. Prepare a statement of cash flows for Trout Corporation using the direct method of reporting cash flows from operating activities for the year ended December 31, Year 2. Show your work.

Trout Corporation Income Statement For the Year Ended December 31, Year 2 Presented below are the balance sheets of Trout Corporation as of December 31, Year 1 and Year 2, and the income statement for the year ended December 31, Year 2. The statement of retained earnings for the year ended December 31, Year 2 is on the next page. All dollars are in thousands. Net sales revenue $ 380 Trout Corporation Balance Sheets December 31, Year 1 and Year 2 revenue $150 Cost of Goods Salaries expense Year 2 $127 Accounts receivable Less: Allowance for doubtful accounts Prepaid insurance 245 Bad debts expense Insurance expense Bond interest expense Operating Income Long-term investment Land Other Income Expense): Buildings and equipment Loss on building fir Gain on sale of investments $(27) Trademark Total Assets Pre-Tax Income from Continuing Operations Less: Income Tax Expense: Net Income iabilities & Stockholde Accoumts payable Salaries payable Deferred tax liability Lease lability Bonds Payable Less: Discount Common Stock Faid-In Capital -in excess of par Preferred Stock Retained Earnings Total Liabilities & Stockholders' Equity $ 36 Additional Information 1. Shareholders were paid cash dividends of $18 million. 2. A building that originally cost S40 million, and which was one-fourth depreciated, was (24) destroyed by fire. Some undamaged parts were sold for $3 million. Bass Corporation, an equity method investee. preferred stock was sold at par 3. Investment revenue includes Trout Corporation's $7 million share of the net income of 4. $30 million par value of common stock was sold for $60 million, and S70 million of 5. A long-term investment in bonds, originally purchased for S30 million, was sold for $34 6. Pretax accounting income exceeded taxable income causing the deferred income tax 7. The right to use a building was acquired with a seven-year lease agreement present value liability to increase by $3 million. of lease payments, $90 million. Annual lease payments of $15 million are paid at January 1 ofeach year starting in Year 2. $150 million of bonds were retired at maturity 8