income statement for the year ended December 31,20Y3, is as follows: \begin{tabular}{|l|l|r|} \hline 1 & Sales & $3,000,000.00 \\ \hline 2 & Cost of merchandise sold & 1,400,000.00 \\ \hline 3 & Gross profit & $1,600,000.00 \\ \hline \end{tabular} 4 Operating expenses: \begin{tabular}{|l|l|r|r|} \hline 5 & Depreciation expense & $100,000.00 & \\ \hline 6 & Other operating expenses & 950,000.00 & \\ \hline 7 & Total operating expenses & & 1,050,000.00 \\ \hline 8 & Operating income & & $550,000.00 \\ \hline \end{tabular} 9 Other income: \begin{tabular}{|r|lr|} \hline 10 & Gain on sale of investments & 75,000.00 \\ \hline 11 & Income before income tax & $625,000.00 \\ \hline 13 & Income tax expense & 125,000.00 \\ \hline 13 & Net income & $500,000.00 \\ \hline \end{tabular} Additional data obtained trom 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 tor 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 debit to Retained Eamings for cash dividends deciared. Prepare a statement of cash flows, using the direct method of presenting cash flows from aporating activities. Be sure to complete the hending of the statement. Fiefor fo the Labols and Amount Descriptions ist provided for the exact wording of the answer choices for fext entries. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, ar any negative adjustments. Labels and Amount Descriptions Cash used for dividends Cash used for purchase of equipment Cash used for purchase of land Cash paid for purchase of treasury stock Cash payments for income taxes Cash payments for merchandise Cash payments for operating expenses Cash received from customers Cash from sale of common stock Cash from sale of investments December 31,20Y3 Decrease in cash Depreciation For the Year Ended December 31, 20Y3 Gain on sale of investments Increase in cash Issuance of common stock for acquisition of land For the Year Ended December 31, 20Y3 Gain on sale of investments Increase in cash Issuance of common stock for acquisition of land Issuance of common stock for purchase of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Navaria Inc. Score: 112/132 Statement of Cash Flows (Label) Cash flows from operating activities: 2 Cash received from customers 3 Cash payments for merchandise 4. Cash payments for operating expenses 5. Cash payments for income taxes 6. Net cash flow from operating activities 7 Cash flows from (used for) investing activities: 9. Cash from sale of investments 10 Cash used for purchase of land 11 Cash used for purchase of equipment 12. Net cash flow used for investing activities (5,250.00) Statement of Cash Flows 11 Cash used for purchase of equipment 12 Net cash flow used for investing activities 1) 14 Gash flows from (used for) financing activities: 15 Cash from sale of common stock if Cash used for dividends 17 Net cash flow from financing activities is Cash at the beginning of the year 20 Gash at the end of the year
