MOTT COMPANY Comparative Balance Sheet Dec. 31, 2008 Dec. 31, 2007 Assets Cash Accounts receivable Inventory. Prepaid expenses. $50,000 $12,000 6,000 8,000 11,000 7,000 2,000 3,000 Building 24,000 20,000 Accumulated depreciation-building. (3,000) (2,000) Total assets $90,000 $48,000 Liabilities and Stockholders' Equity Retained earnings Accounts payable. Long-term note payable. Common stock....... Total liabilities and stockholders' equity.. $ 1,000 $ 4,000 13,000 14,000 33,000 18,000 43,000 12,000 $90,000 $48,000 The income statement for the year is as follows: MOTT COMPANY Sales (all on credit). Expenses and losses Cost of goods sold Depreciation expense. Income Statement For the Year Ended December 31, 2008 Operating expenses, exclusive of depreciation. Loss on sale of land and building Interest expense Income taxes Total expenses and loss. Net income $280,000 $184,000 42,300 3,000 1,200 5,500 9,000 245,000 $ 35,000 Land costing $15,000 was acquired with cash and subsequently sold for $12,500 cash. Buildings costing $12,000 was purchased. Instructions 1. Prepare a statement of operating cash flows for the year ended December 31, 2008 under the indirect method and the direct method 2. Calculate the amount of money realized from the sale of the building 3. What were the dividends paid in cash?