PROBLEM 13-7. Statement of Cash Flows, Direct Method [LO 2] Below is an income statement for Boulder Hill for the year ended December 31, 2018 and the company's balance sheets as of December 31, 2017, and 2018. The prepaid expenses and accrued liabilities included in Boulder Hill's balance sheets involve selling or general (operating) expenses. All of Boulder Hill's sales and merchandise purchases are made on a credit basis. Boulder Hill, Inc. Income Statement For the Year Ended December 31, 2018 $94,000 (37,000) $57,000 Sales Cost of goods sold Gross profit Operating expenses: Selling & general expenses Depreciation expense Operating income Loss on sale of land Income before income tax Income tax expense Net income $14,700 6,300 (21,000) 36,000 (2,400) 33,600 (13,440) $20,160 Balance Sheets December 31, 2017, and 2018 2018 2017 $ 40,200 13,900 14,300 770 69,170 $13,300 11,600 16,100 1,430 42,430 $57,200 $57,200 (17,900) (24,200) 33,000 39,300 5,600 $87,330 $102,170 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Less acc. depreciation Investment in land Total assets Liabilities Accounts payable Accrued liabilities Total current liabilities Stockholder's Equity Common stock Additional paid-in capital Retained earnings Total stockholder's equity Total liabilities and stockholder's equity $ 5,700 4,000 9,700 $ 7,800 3,600 11,400 5,300 17,170 70,000 92,470 $102,170 4,800 6,630 64,500 75,930 $87,330 REQUIRED Determine the following amounts: _a. Cash spent on new equipment. _b. Net amount of investing cash flows. _c. Cash received from issuing stock. _d. Cash paid to suppliers of inventory. _e. Cash paid for selling and general expenses. f. Cash received from the sale of land. g. Cash received from the sale of equipment. 3 Statement of Cash Flows h. Cash received from customers. i. Cash paid for dividends. j. Net amount of operating cash flows. _k. Net amount of financing cash flows