Prepare a statement of cash flows for michael company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are classified as available for sale.

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MICHAELS COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2014 AND 2013 Cash Account receivable short-term investment inventory prepaid rent prepaid insurance supplies land buildings accum. Dep'n - bldgs equipment accum. Dep'n -equip. patents 2014 10,820 21,000 21,050 41,330 2,990 2,720 1,180 124,940 350,980 (105,680) 524,840 (130,350) 45,620 Total Assets 911,440 Accounts payable income taxes payable salaries and wages short term notes payable long term notes payable bonds payable premium on bonds payable common stock paid-in capital in excess of par-common stock Retained earnings 22,890 5,020 5,470 10,270 60,800 400,650 17,532 240,180 25,128 123,500 total liabilities & stockholders equity 911,440 MICHAELS COMPANY INCOME STATEMENT AND DIVIDENT INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue COGS gross margin operating expenses selling expenses administrative expenses 79,830 157,180 41,040 dep'n/ammortization expense total operating expenses income from operations other revenue/expenses gain on sale of land gain n sale of short-term investment dividend revenue interest expense income before taxes income tax expense net income dividends to common stockholders to retained earnings 8,360 4,110 3,130 (52,000) a. Prepare a statement of cash flows for Michaels company using the direct method accompanied b Assume the short-term investments are classified as available-for-sale. 2013 3,420 13,330 31,050 36,620 13,420 940 850 173,900 350,980 (88,090) 400,020 (113,190) 51,910 875,160 31,840 4,050 3,100 10,270 70,190 400,650 28,150 219,980 17,760 89,170 875,160 ON 1,160,310 748,060 412,250 278,050 134,200 (36,400) 97,800 39,940 57,860 (23,530) 34,330 t method accompanied by a reconciliation schedule