Question 3 [30 points] Use the Velor in financial statements and supplementary information given below to prepare a statement of cash fows for the year ended December 31, 2014, uning the indirect method Additional Information a. Purchased machinery for $37.000 cash Sold the long-term investment on January 1, 2014 for $41.000 c. Sold machinery for $13,000 cash that had originally cost $67,000 and had 544, 500 of accumulated depreciation dissued $31,000 of bonds payable at face value e the short-term investment is a treasury bill that was purchased with maturty in 90 days S cash flows cash flows from operating activities Veloring Comparative Balance Sheet Informoon December 31 Assets 2014 2013 Cash 564 600 390.000 Short-term investments 19.000 6,000 Accounts receivable 53 800 82 000 Merchandise inventory 17.900 26.000 Long term investment 0 27.000 Machinery 210.000 240.000 Accumulated depreciation (112.500) (130,000) Total assets 752.800 541.000 Adjust to reconcile net income to cash provided by operac Cash flows from investing activities Cashflows from financing activities Liabilities and Equity Accounts payable Dividends payable 51 800 $1 000 72.000 45.000 Net increase (decrease in cash Cash at beginning of ENG 10:00 AM 14 out Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 51,800 41.000 31.000 346,000 283.000 752,800 72.000 46.000 0 346.000 177,000 641,000 Net increase (decrease) in cash Cash at beginning of year Cash at end of year Velor in Income Statement For Year Ended December 31, 2014 Sales 870,000 Cost of Goods Sold 700,000 Depreciation expense 27,000 Other expenses 42,000 (769,000) Gain on sale of long-term investment 14.000 Loss on sale of machinery (9,000) Net income 106,000