Statement of Cash Flows (25 points) The following is Grafton Corporation's comparative balance sheets for 2014 and 2013 December 31, 2014 2013 Cash Accounts re ceivable Inventories Property, plant, and equipment Accumulated depreciation Investmentin Elkins Corporation Loan receivable S 400,000 $350,000 584,000 857,500 1,483,500 (520,000) 137,500 564,000 925,000 1,653,500 (582,500) 152,500 Total assets S 3.24500 2892.500 S 507,500 477,500 25,000 45,000 Accounts payable Income taxes payable Dividends payable Capital lease obligation Capital stock, common, $1 par Additional paid-in capital Retained earnings 15,000 40,000 200,000 250,000 750,000 1,485,000 250,000 750,000 1,345,000 Total liabilities and stockholders' equity Additional information 1. On December 31, 2013, Grafton acquired 25 percent of Elkins Corporation's common stock for $137,500. On that date, the carrying value of Elkins' net assets and liabilities (which approximated fair value) was S550,000. Elkins reported income of $60,000 for the year ended December 31, 2014. No dividend was paid on Elkins common stock during the year 2. During 2014, Grafton loaned S150,000 to Beckley Company, an unrelated entity Beckley made the first semi-annual principal payment of $15,000, plus interest at 10 percent, on October 1, 2014 3. On January 2, 2014, Grafton $17,500, for $20,000 cash sold equipment costing $30,000, with a carrying value of 4. On January 2, 2014, Grafton entered into a capital lease for an office building. The present value of the annual rental payments is $200,000, which equals the fair value of the building. Grafton made the first lease payment of $30,000 when due on Jammary 2, 2015 5. Gra fton's net income for 2014 was $180,000 6. Grafton declared and paid cash dividends for 2014 and 2013 as follows 2014 2013 Declared Paid Amount Dec. 15, 2014 Feb. 28, 2015 S 40,000 Dec. 15, 2013 Feb. 28, 2014 $ 45,000 Required Prepare a statement of cash flows for Grafton Company for 2014 using the indirect method Incfude relevant supplemental schedules