Statement of Cash Flows-Direct Method The comparative balance sheet of Livers Inc. for December 31, 2013 and 2012, is as follows: Dec. 31, Dec. 31, 2013 2012 Assets Cash $ 172,040 $ 183,950 66,860 Accounts receivable (net) Inventories Investments 61,340 181,210 188,460 0 70,510 Land 0 96,600 205,960 162,170 Equipment Accumulated depreciation-equipment (48,900) $692,930 Total assets (43,700) $603,570 $ 118,900 15,690 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock $ 124,850 12,550 6,800 36,900 5,400 28,370 140,400 82,090 Retained earnings 371,430 353,120 Total liabilities and stockholders' equity $692,930 $603,570 10 not DO IT.. eBook $1,196,550 735,880 $460,670 The income statement for the year ended December 31, 2013, is as follows Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $5,200 Other operating expenses 390,080 Total operating expenses Operating income Other income Gain on sale of investments Income before income tax Income tax expense Net income 395,280 565,390 11,800 $77,190 30,880 $ 46,310 Additional data obtained from an examination of the accounts in the ledger for 2013 are as follows a. The investments were sold for $82,310 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 $25,000 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 tows, cal payments, decrease in care adjustments 0 Prepare a statement of cash flow, wsing the direct method of presenting cash flows from corting activities. Use the minus up to indicate cash out flows, cash payments, decreases in negative adjustments Livers Inc Statement of Cash Flows For the Year Ended December 31, 2013 Cash flows from operating activities Cash received from customers Cash payments for merchandise Cash payments for operatings Cash payment for income taxes et cash flow from operating activities Cash flows from investing active Cash received from sale of investments Cash paid for land Cash paid for equipment Net cash now for ting activities how to financing activities Cash received from sal of common stock Cash paid for dividend Net cash flow from finanong activities Change in cash Cash at the beginning of the year Cash at the end of the Year 0
