Statement of Cash Flows-Direct Method The comparative balance sheet of Suffridge Inc. for December 31, 20Y4 and 20Y3, is as follows: Assets Dec. 31, 20Y4 Dec. 31, 2013 Cash $790,090 $815,600 Accounts receivable (net) 1,185,100 1,091,700 Inventories 1,664,800 1,628,200 Investments 0 515,800 Land 1,146,100 0 Equipment 1,461,300 1,174,800 Accumulated depreciation-equipment (574,800) (439,800) Total assets $5,672,590 $4,786,300 Liabilities and Stockholders' Equity Accounts payable $1,289,400 $1,154,000 Accrued expenses payable 80,900 94,600 Dividends payable 120,300 108,900 Common stock, $5 par 155,200 35,800 Excess of paid-in capital over par 1,134,200 537,300 Retained earnings 2,892,590 2,855,700 Total liabilities and stockholders' equity $5,672,590 $4,786,300 The income statement for the year ended December 31, 20Y4, is as follows: Sales Cost of merchandise sold $5,386,900 2,808,100 $2,578,800 Gross profit Operating expenses: Depreciation expense $135,000 Other operating expenses 1,605,610 Total operating expenses 1,740,610 Income from operations $838,190 Other income: Gain on sale of investments 186,200 Income before income tax $1,024,390 Income tax expense Net income 357,100 $667,290 Additional data obtained from an examination of the accounts in the ledger for 20Y4 are as follows: