1. Statement of Cash FlowsA method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method

   The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:

   		Dec. 31, 20Y3		Dec. 31, 20Y2
   Assets
   Cash		$310,250		$287,940
   Accounts receivable (net)		112,390		103,410
   Inventories		317,280		306,200
   Investments		0		118,620
   Land		162,730		0
   Equipment		350,050		270,700
   Accumulated depreciationequipment		(81,950)		(73,000)
   	Total assets	$1,170,750		$1,013,870
   Liabilities and Stockholders' Equity
   Accounts payable (merchandise creditors)		$211,910		$199,730
   Accrued expenses payable (operating expenses)		21,070		26,360
   Dividends payable		11,710		9,120
   Common stock, $10 par		63,220		49,680
   Paid-in capital: Excess of issue price over par-common stock		237,660		137,890
   Retained earnings		625,180		591,090
   	Total liabilities and stockholders equity	$1,170,750		$1,013,870

   Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

   1. The investments were sold for $138,790 cash.
   2. Equipment and land were acquired for cash.
   3. There were no disposals of equipment during the year.
   4. The common stock was issued for cash.
   5. There was a $81,740 credit to Retained Earnings for net income.
   6. There was a $47,650 debit to Retained Earnings for cash dividends declared.

   Required:

   Prepare a statement of cash flows, using the indirect method of presenting The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

   Livers Inc.
   Statement of Cash Flows
   For the Year Ended December 31, 20Y3
   Cash flows from operating activities:
   Cash paid for dividends Cash paid for land Cash received from sale of investments Cash received from sale of common stock Loss on sale of investments Net income	$
   Adjustments to reconcile net income to net cash flow from operating activities:
   Accumulated depreciation Cash paid for land Cash paid for dividends Cash received from sale of common stock Depreciation Retained earnings
   Cash paid for dividends Cash received from the sale of common stock Cash received from net income Gain on sale of investments Loss on sale of investments Retained earnings
   Changes in current operating assets and liabilities:
   Decrease in accounts receivable Decrease in accounts payable Decrease in inventories Depreciation Increase in accounts receivable Loss on sale of investments
   Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Gain on sale of investments Increase in accrued expenses Increase in inventories
   Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Increase in accounts payable Increase in accrued expenses Loss on sale of investments
   Decrease in accounts payable Decrease in accrued expenses payable Decrease in dividends payable Depreciation Increase in accrued expenses payable Increase in land
   Net cash flow from operating activities		$
   Cash flows from investing activities:
   Cash received from gain on sale of investments Cash received from loss on sale of investments Cash received from net income Cash received from sale of common stock Cash received from sale of investments Cash received from retained earnings	$
   Cash paid for accounts payable Cash paid for accumulated depreciation Cash paid for common stock Cash paid for depreciation Cash paid for dividends Cash paid for purchase of land
   Cash paid for accounts receivable Cash paid for accrued expenses Cash paid for accumulated depreciation Cash paid for inventories Cash paid for purchase of equipment Cash paid for retained earnings
   Net cash flow used for investing activities
   Cash flows from financing activities:
   Cash received from net income Cash received from sale of common stock Cash received from sale of equipment Cash received from sale of inventories Cash received from sale of investments Cash received from retained earnings	$
   Cash paid for dividends Cash paid for inventories Cash paid for purchase of equipment Cash paid for purchase of investments Cash paid for purchase of land Cash paid for retained earnings
   Net cash flow from financing activities
   Cash received from gain on sale of investments Cash received from loss on sale of investments Cash received from net income Cash received from sale of common stock Cash received from sale of investments Change in cash		$
   Cash at the beginning of the year
   Cash at the end of the year		$