Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

Statement of Cash Flows-Indirect Method The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows: Dec. 31, 2014 Dec. 31, 2013 Assets Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-equipment $84,870 130,410 186,310 7,590 379,510 (98,670) $690,020 $103,570 139,630 173,060 5,240 310,060 (76,040) $655,520 Total Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings $144,900 0 22,000 337,000 186,120 $690,020 $137,000 196,660 14,000 185,000 122,860 $655,520 Total Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows: a. Net income, $161,950 b. Depreciation reported on the income statement, $48,360 C. Equipment was purchased at a cost of $95,180, and fully depreciated equipment costing $25,730 was discarded, with no salvage realized d. The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty e. 8,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $98,690