Direct Method-Preparing a Statement of Cash Flows Lauder Corp. reported the following financial statements. December 31 Balance Sheet Prior Year Current Year Difference Cash $60,000 $155,000 $95,000 Accounts receivable 47,500 37,500 (10,000) Merchandise inventory 77,500 147,500 70,000 Land 50,000 10,000 (40,000) Equipment 120,000 180,000 60,000 Accumulated depreciation (30,000) (60,000) (30,000) Total assets $325,000 $470,000 $145,000 Accounts payable 40,000 45,000 5,000 Notes payable, long-term 17,500 5,000 (12,500) Bonds payable 0 75,000 75,000 Common stock (no-par) 200,000 230,000 30,000 Retained earnings 67,500 Total liabilities and stockholders' equity $325,000 115,000 47,500 $470,000 $145,000 Income Statement For Year Ended December 31 Current Year Revenues $380,000 Costs of goods sold 205,000 Depreciation 30,000 Other expenses 35,000 Loss on sale of land 25,000 Net income $85,000 Required