Check my w Problem 14-21A (Algo) Using financial statements to prepare a statement of cash flows-direct method LO 14-2, 14-3, 14-4 The following financial statements were drawn from the records of Perez Shoes: Balance Sheets As of December 31 Year 2 Year 1 $130,584 60, 334 132,211 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation equipment Land Total assets Liabilities Accounts payable 148,400 (76,857) 81, eee $476,472 $ 26,660 69,860 119,620 31,800 256,700 (141,600) 49,500 $ 412,540 $ 39,572 $ 45,790 LLaLLLLS $ 39,572 36,700 695 Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and equity $ 45,790 29, 360 1,389 1,690 58,500 240,000 35,811 $ 412,540 304,500 95, 005 $476,472 $ 587,690 (291,817) 295,873 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense (186,990) (18,717) (12,490) 77,676 (3,258) $ 587,690 (291, 817) 295,873 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating items Interest expense Loss on the sale of equipment Net income (186,990) (18,717) (12,490) 77,676 (3,258) (1,730) $ 72,688 Additional Information ws 1. Sold equipment costing $108,300 with accumulated depreciation of $84.260 for $22,310 cash. 2. Paid a $13,494 cash dividend to owners. Analyze the data and prepare a statement of cash flows using the direct method (Amounts to be deducted and cash outflows should be indicated by a minus sign.) PEREZ SHOES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows From Operating Activities Cash receipts from customers Cash Payments for Total cash outflows 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 0 Ending cash balance $ 0