low from ctivities, PR 13-2A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Lankau Enterprises Inc. at December 31, 2014 and 2013, is as follows: Dec. 31, 2014 Dec. 31, 2013 Assets Cash .......... Accounts receivable (net)................ Merchandise inventory ........... ..... Prepaid expenses ..... .. .. Equipment.................................... Accumulated depreciation-equipment ........ $ 219,900 336,900 482,400 20,100 982,500 (256,200) $1,785,600 $ 269,700 363,000 448,800 14,400 805,500 (198,300 $1,703,100 $ 375,300 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) ........ Mortgage note payable..... Common stock, 525 par........... Paid-in capital: Excess of issue price over par common stock..... Retained earnings...... 411,000 705,000 294,300 $1,785,600 $ 356,400 504,000 36,000 480,000 326,700 $1,703,100 F G H Statement of Cash Flows For the Year Ended December 31, 2014 $ 198,000 125,100 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities 26,100 18.900 Cash flows from investing activities Less cash paid for purchase of equip Pr. 14(13)-2A H G I J L M N O B K 18,900 C D E F Increase in accounts payable Net cash flow from operating activities Cash flows from investing activities: Less cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Less cash paid for dividends Less cash paid to retire mortgage note payable Net cash flow used for financing activities Increase (decrease) in cash Cash at the beginning of the year Cash at the end of the year Pr. 14(13)-2A Calculation Mode: Automatic Workbook Statistics