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You have completed the field work in connection with your audit of Alexander Corporation for the year ended December 31, 2012. The balance sheet accounts at the beginning and end of the year are shown below.

		Dec. 31, 2012		Dec. 31, 2011			Increase or (Decrease)
Cash		$320,975		$344,190			($23,215	)
Accounts receivable		542,185		407,715			134,470
Inventory		856,664		704,550			152,114
Prepaid expenses		13,860		9,240			4,620
Investment in subsidiary		127,628		0			127,628
Cash surrender value of life insurance		2,661		2,079			582
Machinery		239,085		219,450			19,635
Buildings		618,156		471,125			147,031
Land		60,638		60,638			0
Patents		79,695		73,920			5,775
Copyrights		46,200		57,750			(11,550	)
Bond discount and issue cost		5,200		0			5,200
		$2,912,947		$2,350,657			$562,290
Accrued taxes payable		$104,241		$91,939			$12,302
Accounts payable		345,668		323,400			22,268
Dividends payable		80,850		0			80,850
Bonds payable8%		144,375		0			144,375
Bonds payable12%		0		115,500			(115,500	)
Allowance for doubtful accounts		40,772		46,200			(5,428	)
Accumulated depreciationbuildings		489,720		462,000			27,720
Accumulated depreciationmachinery		199,815		150,150			49,665
Premium on bonds payable		0		2,772			(2,772	)
Common stockno par		1,358,511		1,678,446			(319,935	)
Paid-in capital in excess of parcommon stock		125,895		0			125,895
Retained earningsunappropriated		23,100		(519,750	)		542,850
		$2,912,947		$2,350,657			$562,290

STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2012
January	1, 2012		Balance (deficit)		$(519,750	)
March	31, 2012		Net income for first quarter of 2012		28,875
April	1, 2012		Transfer from paid-in capital		490,875
			Balance		0
December	31, 2012		Net income for last three quarters of 2012		103,950
			Dividend declaredpayable January 21, 2013		(80,850	)
			Balance		$23,100

Your working papers from the audit contain the following information:

1.		On April 1, 2012, the existing deficit was written off against paid-in capital created by reducing the stated value of the no-par stock.
2.		On November 1, 2012, 34,188 shares of no-par stock were sold for $296,835. The board of directors voted to regard $5 per share as stated capital.
3.		A patent was purchased for $17,325.
4.		During the year, machinery that had a cost basis of $18,942 and on which there was accumulated depreciation of $6,006 was sold for $10,395. No other plant assets were sold during the year.
5.		The 12%, 20-year bonds were dated and issued on January 2, 2000. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were retired at 100.9 plus accrued interest on March 31, 2012.
6.		The 8%, 40-year bonds were dated January 1, 2012, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $969.
7.		Alexander Corporation acquired 70% control in Crimson Company on January 2, 2012, for $115,500. The income statement of Crimson Company for 2012 shows a net income of $17,325.
8.		Extraordinary repairs to buildings of $8,316 were charged to Accumulated DepreciationBuildings.
9.		Interest paid in 2012 was $12,128 and income taxes paid were $39,270. Complete the Statement of Cash Flow showing the S23,215 decease in Cash

Complete the Statement of Cash Flow

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Statement of Cash flow Particulars

Statement of Cash Flows 2012(Amount in $)

Cash flows from operating activities

Profit before taxation 132825

Adjustments for:

Depreciation 77385

Investment income(17325*70%) 12127

Interest expense 12128

Profit / (Loss) on the sale of property, 2541 plant & equipment

Working capital changes:

(Increase) / Decrease in trade and other receivables (134470)

(Increase) / (Decrease) in inventories (152114)

Increase / (Decrease) in trade payables 22268+12302

Cash generated from operations (39612)

Interest paid (12128)

Income taxes paid (39270)

Dividends paid (80850)

Net cash from operating activities (171860)

Cash flows from investing activities

Business acquisitions, net of cash acquired

Purchase of property, plant, and equipment (17325)

Proceeds from sale of equipment 10395

Acquisition of portfolio investments (115500)

Investment income 12127

Net cash used in investing activities (110303)

Cash flows from financing activities

Proceeds from issue of share capital 230073

Proceeds from long-term borrowings 144375

Payment of long-term borrowings (115500)

Net cash used in financing activities 258948

Net increase in cash and cash equivalents (23215)

Cash and cash equivalents at beginning of period 344190

Cash and cash equivalents at end of period 320975

I cannot seem to come up with the same answer as cash from operation activites. please explain what goes into figure