Instructions The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets $155,000.00 $150,000.00 Cash 450,000.00 400,000.00 4 Accounts receivable (net) 770,000.00 750,000.00 5 Inventories 6 Investments 0.00 100,000.00 Land 500,000.00 0.00 Equipment 1,400,000.00 1,200,000.00 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 Instructions Liabilities and Stockholders' Equity $340,000.00 $300,000.00 12 Accounts payable (merchandise creditors) 45,000.00 50,000.00 13 Accrued expenses payable (operating expenses) 30,000.00 25,000.00 14 Dividends payable 700,000.00 15 Common stock, $4 par 600,000.00 200,000.00 175,000.00 16 Paid-in capital in excess of par-common stock 1,360,000.00 950,000.00 17 Retained earnings 18 Total liabilities and stockholders' equity $2,675,000.00 $2,100,000.00 The income statement for the year ended December 31, 20Y3, is as follows: Instructions The income statement for the year ended December 31, 20Y3, is as follows: 1 Sales $3,000,000.00 2 Cost of goods sold (1,400,000.00) 3 Gross profit $1,600,000.00 + Operating expenses Depreciation expense $100,000.00 Other operating expenses 950,000.00 Total operating expenses (1,050,000.00) 8 Operating income $550,000.00 9 Other income 10 Gain on sale of investments 75,000.00 Income before income tax $625,000.00 Instructions 950,000.00 5 Other operating expenses (1,050,000.00) Total operating expenses $550,000.00 8 Operating income 9 Other income: 75,000.00 10 Gain on sale of investments $625,000.00 11 Income before income tax 12 Income tax expense (125,000.00) $500,000.00 13 Net income 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. 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. . 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 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign. Statement of Cash Flows Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign. Livers Inc. Statement of Cash Flows (Label) Cash flows from (used for) operating activities