IL On the basis of the following data for Larson Co. for the year ending December 31 Year 2, and the preceding year ended December 31 Year 1. prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that: (worth 40 pts) The Investments were sold for $210,000 cash. Equipment and Land were acquired for cash. The common stock was issued for cash. There were no disposals of equipment during the year Depreciation expense was $120,000 I Cash dividends paid $102,000 The common stock was issued for cash Net income is $600,000 There was a credit of $600,000 to retained earnings for net income There was a debit of 108,000 to Retained Earnings for cash dividend declared Cash Accounts receivable (net) Investments Inventories Land Equipment Accumulated depreciation Year 2 Year 1 $186,000 $ 180,000 540,000 480,000 0 120,000 924,000 900,000 600,000 1,680.000 1,440,000 (720,000 (600.000) $3.210.000 $2,520,000 Accounts payable (merchandise creditors) Accrued expenses payable Cash dividends payable Common stock, S4 par Paid-in capital in excess of par common stock Retained earnings $ 408,000 $ 360,000 54,000 60,000 36,000 30,000 840,000 720,000 240,000 210,000 1.632.000 1.140,000 $3.210.000 $2.520.000