PR 14-5A Statement of cash flows-direct method applied to PR 14-1A natvitiomThe comparative balance sheet of Cromme Inc.for December 31, 2016 and 2015, is as follows ng activities 40 Dec. 31, 2016 Dec. 31, 2015 Assets 585,920 208,960 617,120 240,000 625,760 227,840 Cash Accounts receivable (net) Inventories Investments . . . Land 553,120 (148,000) $2,057,120 705,120 Accumulated depreciation-equipment $2,362,080 Total assets .. , Liabilities and Stockholders' Equity 424,480 $ 404,960 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable. Common stock, $2 par Paid-in capital: Excess of issue price over par-common stock Retained earnings.. . 42,240 24,000 150,000 417,500 52,640 19,200 100,000 280,000 1,200,320 $2,057,120 Total liabilities and stockholders equity... . . . .. $2,362,080 The income statement for the year ended December 31, 2016, is as follows: $ 5,372,559 es 3.306,190 $2,066,369 Cost of merchandise sold Operating expenses: Depreciation expense S 18,400 1,755,402 Total operating expenses . Operating income Other income 1,773,802 $292,567 Gain on sale of investments Income before income tax Income tax expense Net income 40,000 332,567 133,027 $ 199,540 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: a. The investments were sold for $280,000 cash. b. 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 $96,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities