Prepare Dallas statement of cash flows for the year using indirect method.

Question 3. (34') The income statement and additional data of Dallas Products, Inc. follow: Dallas Products, Inc Income statement Year Ended December 31, 2014 Revenues: Service revenue Dividend revenue Total Revenues: Expenses Cost of goods sold Salary expense Depreciation expense Advertising expense Interest expense Income tax expense Total Expenses $299,600 $6,700 S306,300 $10,800 $44,000 $21,000 S101,500 $2,100 $19,500 (S198,900) Loss from sale of land (S3,000) $104,400 Net Income Additional data: a. Acquisition of plant assets was $1 50,000. Of this amount, $95,000 was paid in cash and $55,000 by signing a note payable. b. Book value of land is $20,000. c. Cash received from issuance of common stock totaled $50,000. d. Payment of a long-term note payable was $18,000. e. Payment of cash dividends was $12,000 f. From the balance sheets: 31-Dec 2014 2013 Changes from 2013 to 2014 Current Assets Cash Account receivable Inventory Prepaid expense $86,200 $33,500 $44,000 $60,000 $84,000 $62,000 S9,500 $8,300 $52,700 $16,000 $22,000 $1,200 Current Liabilities Accounts payable Accrued liabilities $38,000 $36,500 $1,000 $13,000 $1,500 -$12,000 Page 8 of 9