Statement of Cash Flows (Indirect Method) The Towne Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow:

TOWNE COMPANY Income Statement For the Year Ended December 31, 2013
Service Fees Earned		$380,400
Dividend and Interest Income		16,800
		$397,200
Wages and Other Operating Expenses	$342,000
Depreciation Expense	62,400
Franchise Amortization Expense	12,000
Loss on Sale of Equipment	8,400
Gain on Sale of Investments	(20,400)	404,400
Net Loss		$(7,200)

TOWNE COMPANY Balance Sheets
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$51,600	$43,200
Accounts Receivable	15,600	21,600
Interest Receivable	-	4,800
Prepaid Expenses	19,200	9,600
Long-term Investments-Available for Sale	-	84,000
Fair Value Adjustment to Investments	-	12,000
Plant Assets	835,200	786,000
Accumulated Depreciation	(280,800)	(222,000)
Franchise	109,200	34,800
Total Assets	$750,000	$774,000
Liabilities and Stockholders' Equity
Accrued Liabilities	$14,400	$16,800
Notes Payable	-	32,400
Common Stock ($10 par value)	714,000	642,000
Retained Earnings	45,600	70,800
Unrealized Gain on Investments	-	12,000
Treasury Stock	(24,000)	-
Total Liabilities and Stockholders' Equity	$750,000	$774,000

During the year, the following transactions occurred: 1. Sold equipment for $10,800 cash that originally cost $22,800 and had $3,600 accumulated depreciation. 2. Sold long-term investments that had cost $84,000 for $104,400 cash. Unrealized gains totaling $12,000 related to these investments had been recorded in earlier years. At year-end, the fair value adjustment and unrealized gain account balances were eliminated. 3. Paid cash to extend the company's exclusive franchise for another three years. 4. Paid off a note payable at the bank on January 1. 5. Declared and paid an $18,000 dividend. 6. Purchased treasury stock for cash. 7. Acquired land valued at $72,000 by issuing 7,200 shares of common stock. Required a. Compute the change in cash that occurred in 2013. b. Prepare a statement of cash flows using the indirect method.

Change is Cash during 2013 $ b. Use a negative sign with cash outflow answers. Cash Flow from Operating Activities Net Loss Add (decoct) items to convert net income to cash basis Depreciation Franchise Amortization Loss on Sale of Equipment Gain on Sale of Investments Accounts Receivable Interest Receivable Prepaid Expenses Accrued Liabilities Cash Provided by Operating Activities Cash Flow from Investing Activities Sale of Equipment Sale of Investments Extension of Franchise Cash Provided by Investing Activities Cash Flow from Financing Activities Payment of Notes Payable Payment of Dividends Purchase of Treasury Stock Cash Used by Financing Activities Net in Cash Cash at Beginning of Year Cash at End of Year