Statement of Cash FlowsDirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:
Statement of Cash Flows-Direct Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $1 par $ 202,060 73,630 207,510 $ 189,440 67,550 199,530 77,640 106,370 226,780 (53,900) $762,450 178,570 (48,100) $664,630 $ 137,480 13,820 7,500 40,600 $ 130,930 17,280 6,000 31,240 Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 154,600 408,450 $762,450 90,390 388,790 $664,630 The income statement for the year ended December 31, 20Y3, is as follows: Sales Cost of goods sold Gross profit Operating expenses: $1,309,010 805,040 $503,970 Depreciation expense $ 5,800 Other operating expenses 426,740 Total operating expenses 432,540 Operating income $ 71,430 Other income: Gain on sale of investments Income before income tax Income tax expense Net income 13,000 $ 84,430 33,770 $ 50,660 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $90,640 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $31,000 debit to Retained Earnings for cash dividends declared Required: Prepare a statement of cash flows, using the direct method of presenting 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 Net cash flow from operating activities Cash flows from investing activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
