Could you assist me with Problem 23-6? I have entered the accounts for the problem. I need a breakdown of how the problem is solved.

Problem 23-6 Comparative balance sheet accounts of Marcus Inc. are presented below. MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2014 AND 2013 December 31 Debit Accounts 2014 2013 Cash Accounts Receivable Inventory Investments (available-for-sale) Machinery Buildings Land $41,970 70,660 29,320 22,340 29,870 67,460 7,870 $34,080 60,320 24,920 38,220 18,300 56,480 7,870 $269,490 $240,190 $2,720 6,320 13,910 35,660 3,005 20,790 149,400 37,685 $1,320 2,130 8,400 24,230 2,690 31,210 124,700 45,510 $269,490 $240,190 Credit Accounts Allowance for Doubtful Accounts Accumulated DepreciationMachinery Accumulated DepreciationBuildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings Additional data (ignoring taxes): 1 . 2 . 3 . 4 . 5 . Net income for the year was $38,535. Cash dividends declared and paid during the year were $21,660. A 20% stock dividend was declared during the year. $24,700 of retained earnings was capitalized. Investments that cost $25,210 were sold during the year for $28,560. Machinery that cost $4,000, on which $701 of depreciation had accumulated, was sold for $2,443. Marcus's 2014 income statement follows (ignoring taxes). Sales revenue $535,961 Less: Cost of goods sold 379,670 Gross margin 156,291 Less: Operating expenses (includes $10,401 depreciation and $5,110 bad debts) 120,250 Income from operations Other: Gain on sale of investments Loss on sale of machinery Net income 36,041 $3,350 (856 ) 2,494 $38,535 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ Net cash flow from operating activities (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ALEXANDER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 (Indirect Method) Cash Flows from Operating Activities $ Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ Depreciation Expense Gain on Sale of Investments Loss on Sale of Machinery Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Increase in Accrued Payables Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Investments Purchase of Machinery Addition to Buildings Sale of Investments Sale of Machinery Net Cash Used by Investing Activities Cash Flows from Financing Activities Reduction in Long-Term Note Payable Cash Dividends Paid Net Cash Used by Financing Activities Net Increase in Cash Cash, J anuary 1, 2014 $ Cash, December 31, 2014