Prepare a statement of cash flows using the direct method... No reconciliation schedule required

--- -., iau-una; mel-nom Urecker Inc. . I a vreetin 7 ca A. parcd as ot December 31, 2014. b 5 rd "many, h . . (., ad the following statementfi Pr msKRNx-M BRECKER INC. COMPARATIVE BALANCE SHEET As OF DECEMBER 31, 2014 AND 2013 C h 12/31/14 12/31/13 as $ 6, Accounts receivable 62 $ Short-term investments (available-for-sale) 35:OOO 18'000 Inventory 40,000 60,000 Prepaid rent 5 000 4 000 EqUIpment . . 154,000 130,000 Accumulated deprecxation-equipment (35,000) (25,000) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $ 46,000 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,000 Long-term loans payable 60,000 69,000 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,000 36,000 Total liabilities and stockholders' equity $313,000 $295,000 w w BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income MN Additional information: $338,150 175,000 163,150 120,000 $11,400 2,000 $ 43,150 9,400 33,750 6,750 27,000 1. Dividends in the amount of $6,000 were declared and paid during 2014: 2. Depreciation expense and amortization expense are-included In operating expenses 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,000 and was 70% deprecated was sold during 2014. instructions 3repare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) 323-14 (SCF-Indirect Method) Data for Brecker Inc. are presented in E23-13 nmuctians