Dec.31,20Y2 Dec. 31,20Y3 Assets $155,000.00 $150,000.00 3 Cash Accounts receivable (net) 450,000.00 400,000.00 4 5 Inventories 770,000.00 750,000.00 6 Investments 100,000.00 500,000.00 0.00 7 Land 1,400,000.00 1,200,000.00 8 Equipment (600,000.00) (500,000.00) 9 Accumulated depreciation-equipment $2,675,000.00 $2,100,000.00 10 Total assets Liabilities and Stockholders' Equity $340,000.00 $300,000.00 12 Accounts payable (merchandise creditors) 50,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 4 Dividends payable 30,000.00 25,000.00 Common stock, $4 par 700,000.00 600,000.00 5 Paid-in capital: Excess of issue price over par-common stock 200,000.00 175,000.00 16 ,360,000.00 950,000.00 7 Retained earnings $2,675,000.00 $2,100,000.00 18 Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for S175,000 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 $500,000 credit to Retained Earnings for net income. f. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign. Score: 30/173 Livers Inc. Statement of Cash Flows Label) 1Cash flows from operating activities: 2 Net income $500,000.00 Adjustments to reconcile net income to net cash flow from operating activities: 4 Depreciation 100,000.00 Gain on sale of investments (75,000.00) 6 Changes in current operating assets and liabilities: 10 12 Cash flows from investing activities: 13 14 15 16 17 18 Cash flows from financing activities: 19 20 21 23 Cash at the beginning of the year 24 Cash at the end of the year 25