Question 3 [30 points) Use the Gulf Corp. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method Additional Information a Purchased equipment for $30,000 cash b. Sold the long-term investment on January 1, 2014 for $43,000 c Sold equipment for $13,000 cash that had originally cost $57,500 and had $44,500 of accumulated depreciation d. Issued $28,000 of bonds payable at face value e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. (select one) Statement of Cash Flows (select one) Cash flows from operating activities Gulf Corp Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 268, 100 100,000 Short-term investments 183,000 171,000 Accounts receivable 115,700 91,000 Merchandise inventory 17.100 12,000 Long term investment 0 25.000 Equipment 252,500 280,000 Accumulated depreciation (105,500) (110,000) Total assets 730,900 569,000 Adjust to reconcile net income to cash provided by oper act: Cash flows from investing activities Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 84.900 24,000 28.000 355,000 239,000 730,900 51.000 44.000 0 355,000 119,000 569,000 Net increase (decrease) in cash Cash at beginning of year Cash at end of year Gulf Corp Income Statement For Year Ended December 31, 2014 Sales 880,000 Cost Of Goods Sold 700,000 Depreciation expense 40,000 Other expenses 38,000 (778,000) Gain on sale of long-term investment 18,000 Net income 120,000