Dec. 31, 20Y2 Statement of Cash Flows-Direct Method applied to PR 11-1 The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: Assets Dec. 31, 20Y3 Cash Accounts receivable (net) $155,000 $150,000 450,000 400,000 770,000 750,000 Inventories Investments Land 0 100,000 500,000 0 Equipment 1,400,000 1,200,000 Accumulated depreciation-equipment (600,000) (500,000) Total assets $2,675,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $340,000 $300,000 Accrued expenses payable (operating expenses) 45,000 50,000 Dividends payable 30,000 25,000 Common stock, $4 par 700,000 600,000 Paid-in capital in excess of par-common stock 200,000 175,000 Retained earnings Total liabilities and stockholders' equity 1,360,000 950,000 $2,675,000 $2,100,000 The income statement for the year ended December 31, 20Y3, is as follows: Sales Cost of goods sold Gross profit $3,000,000 (1,400,000) $1,600,000 Operating expenses: Depreciation expense $100,000 Other operating expenses 950,000 (1,050,000) Total operating expenses Operating income Other revenue: Gain on sale of investments Income before income tax Income tax expense Net income $550,000 75,000 $625,000 (125,000) $500,000 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: 10 Secti Untitl > Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $90,000 decrease in Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from (used for) operating activities. Us payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from (used for) operating activities: Cash received from customers Cash payments for inventories Cash payments for operating expenses Cash payments for income taxes -125,000 Net cash flows from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments 175,000 Cash paid for purchase of land -500,000 Cash paid for purchase of equipment Net cash flows used for investing activities. -200,000 -525,000