Question 4 [30 points] Use the Velor Inc. 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 $35,000. c. Sold equipment for $18,500 cash that had originally cost $52,500 and had $34,000 of accumulated depreciation. d. Issued $51,000 of bonds payable at face value. e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. Velor Inc. Comparative Balance Sheet Information Velor Inc. Statement of Cash Flows For the Year Ended December 31, 2014 December 31 Assets Cash Short-term investments Accounts receivable... 119,500 Merchandise inventory... 89,800 2014 276,000 129,000 119,000 71,000 168,000 2013 Cash flows from operating activities 110,000 Net cash inflow from operating activities... 53,000 Adjust. to reconcile net income to cash provided by oper. act.: Long term investment... 0 47,000 Cash flows from investing activities Equipment... Accumulated depreciation. 207,500 230,000 (173,000) (180,000) Total assets. 648,800 565,000 Cash flows from financing activities Liabilities and Equity Accounts payable... 50,800 69,000 Dividends payable. 37,000 39,000 Net increase (decrease) in cash. Cash at beginning of year.. Bonds payable 51,000 0 Cash at end of year... Share capital. Retained earnings.. Total liabilities and equity. 326,000 326,000 184,000 131,000 648,800 565,000 Velor Inc. Income Statement For Year Ended December 31, 2014 Sales. Cost Of Goods Sold Depreciation expense Other expenses... Loss on sale of long-term investment... Net income... 680,000 550,000 27,000 38,000 (615,000) (12,000) 53,000