MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2014 AND 2013 December 31 Debit Accounts 2014 2013 Cash $42,200 $33,300 Accounts Receivable 70,210 60,250 Inventory 29,930 24,180 Investments (available-for-sale) 22,660 38,230 Machinery 30,170 18,530 Buildings 67,770 56,500 Land 7,200 7,200 $270,140 $238,190 Credit Accounts Allowance for Doubtful Accounts $2,560 $1,030 Accumulated DepreciationMachinery 6,080 1,810 Accumulated DepreciationBuildings 13,630 8,580 Accounts Payable 35,110 24,010 Accrued Payables 3,005 2,726 Long-Term Notes Payable 21,180 31,360 Common Stock, no-par 149,800 124,900 Retained Earnings 38,775 43,774 $270,140 $238,190 Additional data (ignoring taxes): 1. Net income for the year was $40,931. 2. Cash dividends declared and paid during the year were $21,030. 3. A 20% stock dividend was declared during the year. $24,900 of retained earnings was capitalized. 4. Investments that cost $24,520 were sold during the year for $28,170. 5. Machinery that cost $3,910, on which $793 of depreciation had accumulated, was sold for $2,256. Marcuss 2014 income statement follows (ignoring taxes). Sales revenue $537,502 Less: Cost of goods sold 379,230 Gross margin 158,272 Less: Operating expenses (includes $10,113 depreciation and $5,850 bad debts) 120,130 Income from operations 38,142 Other: Gain on sale of investments $3,650 Loss on sale of machinery (861 ) 2,789 Net income $40,931 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)