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The comparative balance sheet of Green Earth Lawn and Garden Inc. for December 31, 2008 and 2009, is as follows: Assets Cash Accounts rec. (net) Inventories Investments Land Equipment Accumulated Depreciation 2009 137,900 206,800 290,500 0 200,000 255,000 (100,300) 989,900 2008 142,300 190,500 284,100 90,000 0 205,000 (76,700) 835,200 Liabilities and Stockholder's Equity Accounts payable (merchandise creditors) Accrued expenses (operating expenses) Dividends payable Common stock, $1 par Paid in capital in excess of par - common stock Retained earnings 224,900 201,400 14,100 16,500 21,000 19,000 10,000 8,000 200,000 100,000 519,900 490,300 989,900 835,200 The income statement for the year ended December 31, 2009, is as follows: Sales 940,000 Cost of merchandise sold 489,300 Gross profit 450,700 Operating expenses: Depreciation expense 23,600 Other operating expenses 278,900 Total operating expenses 302,500 Operating income 148,200 Other income: Gain on sale of investments 32,000 Income before income tax 180,200 Income tax expense 62,300 Net income 117,900 The following additional information was taken from the records: 1. Equipment and land were acquired for cash 2. There were no disposals of equipment during the year 3. The investments were sold for $122,000 cash 4. The common stock was issued for cash 5. There was a $88,300 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 include (at the end), the separate schedule reconciling net income and net cash flow from operating activities (direct method is being used and this is required)