Chapter 12 P12-66A. (Learning Objectius 2. 3. 4. Prepare the statement of cash flow indirect and did methods) The comparative balance sheets of Victoria Vicente Design Studio, Inc., at June 30, 2014 and 2013, and transaction data for fiscal 2014, are as follows: Victoria Vicente Design Studio Comparative Balance Sheets 2014 Decrease 51000 51220011R600 59.000 22 100 78.400 3.000 1.500 2.300 18000 20.400 2.700 17,700 74,700 92.800 143.100) $31.500 $ 246,3005 6.2002 13 Current abilities: Notes payable, short-term Accounts payable $ $ $ 13,800 46,400 13.400 18.700 40,400 4.900 5.000 117001 Accrued liabilities nterest payable 19 Salary payable 20 Long-term rote payable 21 Common stock 22 Retained earnings 47.100 69,300 53.700 $ 314,500 3.100 2,300 2.900 94.000 51.200 18.600 $ 246,300 1,200 12.1001 (46 9001 18,100 35,100 $ 68,200 Transaction data for the year ended June 30, 2014, follows: a. Net income, $72,800 b. Depreciation expense on equipment, $13,300 c. Purchased long-term investment with cash, $17,700 d. Sold land for $36,400, including $6,700 loss e. Acquired equipment by issuing long-term note payable, $14,200 f. Paid long-term note payable, $61,100 & Received cash for issuance of common stock, $13,200 h. Paid cash dividends, $37,700 i. Paid short-term note payable by issuing common stock, 54,900 Requirements 1. Prepare the statement of cash flows of Victoria Vicente Design Studio, Inc., for the year ended June 30, 2014, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current accounts except Notes Payable, short-term result from operating transactions 2. Prepare a supplementary schedule showing cash flows from operations by the direct meth- od. The accounting records provide the following: collections from customers, $230,800, interest received, $1,400, payments to suppliers, $98,400, payments to employees, $30,700, payments for income tax, $13,200, and payment of interest, $4,400