Additional data obtained from an examination of the accounts in the ledger for 20y9 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $109,790 cash. d. The common stock was issued for cash. e. There was a $76,720 credit to Retained Earnings for net income. f. There was a $49,000 debit to Retained Earnings for cash dividends declared, Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets 20Y9 20Y8 Customize and conitol Googles, $315,400 114,260 322,530 0 165,440 355,870 (83,310) 51,190,190 $296,100 106,350 314,860 121,990 \begin{tabular}{rr} 165,440 & 0 \\ 355,870 & 278,380 \\ (83,310) & (75,070) \\ \hline$1,190,190 & $1,042,610 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Commen stock, $10 par \begin{tabular}{rr} $215,420 & $205,390 \\ 21,420 & 27,110 \\ 11,900 & 9,390 \\ 64,270 & 51,090 \\ \hline 41,510 & 141700 \end{tabular} Cash balance, January 1, 20y9 Cash balance, December 31,20Y9 Feectack F Check My Work The statement of cash fows reports three types of cash fiow actlvities, as follows: The statement of cash fows reports three types of cash fiow activities, as foliows: 1. Cash fows from operating activities are the cash flows from transactions that affect the net income of the company. 2. Cash fows from (used for) investing activities are the cash flows recelved from or used for transactions that affect investments in the noncurrent assets of the company. 3. Cash fows from (used for) financing activities are the cash flows recelved from or used for transactions that affect the debt and equity of the company. The indrect method reports cash flows from operating activities by beginning with net income and adjusting it for revenues and expenses that do not involve the recelpt or payment of cash. A primary advantage of the indirect method is that it reconciles the differences between net income and net cash flows from operations. Calculate the increases and decreases in the current assetliabilty accounts over the period. How do these increases or decreases impact the amount of cash a company has? Were there any purchases or sales of noncurrent assets during the year? If there were any sales of noncurrent assets, were these noncurrent assets sold at what the company had initialy pald? Or were the assets sold for more or less than the book value? Did the company engage in any activities that affected the equity or debt in their company? Theck My Wor: The atatement of eath fows reports three types of cash fiow activities, as tolows: 1. Cash fows from operating activites are the cash fows from transactons that alfect the net income of the company. 2. Cash fows from (used for) irwesting activites are the cash flows fecelved from or used for transactions that affect investrments in the noncurferht assets of the company. 3. Cash fows from (used for) financing activites are the cash fows recewed froa or usad for transactions that atfect the debt and coulfy of the compariy. The indirect method reports cash fows from operafing actwites by beginning wih net income and adjusting it for tevenues and expenses that do hot involve the teceipt or payment of cash. A primary advantage of the indirect method is that it reconciles the difterences between net inceme and net east flows frem aperations. Calcutate the increases and decreases in the current assethablify accounts over the period. How do these increases or decreases impact the Cash flows frem (used for) operating activities: Net income: 76,720 Adjustments to reconcile net income to net cash fows from (used for) operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Incresse in inventories 4,910 Increvse in accounts pavable 7.670 Decresse in accrued expenses payable r 10.030 Net cash flows from operating octivities 561,520 Cosh flows from (used for) investing sctivities: cash meeived from loss on 1 ale of inyestments Cashipaid for purchare of iand v 4100,7902 cash paid tor purchase of equiment Net cash fows used for investing activities 411.520x Cesh flows from (used for) financing activities