Statement of Cash Flows-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 Accounts receivable (net) $263,440 $246,750 95,43088,620 269,410 262400 0 101660 Investments Land Equipment Accumulated depreciation-equipment 138,180 297,240 231,980 (69,590)(62,560) 994,110 $868,850 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $179,930 $171,160 17,89022,590 9,940 7,820 53,680 42,570 201,800 118,160 530,870 506,550 $994,110 $868,850 Total liabilities and stockholders' equity Additinnal data nhtainad frnm an evamination Check My Work 2 more Check My Work uses remaining. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $129,930 $171,160 17,890 22,590 9,940 7,820 53,680 42,570 201,800 118,160 530,870 506,550 994,110 $868,850 Total liabilities and stockholders equity Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows a. The investments were sold for $118,940 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 $65,160 credit to Retained Earnings for net income. f. There was a $40,840 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating ectivities. Use the minus sign to indicate cash out flows, cash paym 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 income Depreciation Gain on sale of investments 65,160 V Adjustments to reconcile net income to net cash flow from operating adtivities 7,030 17,280 Check My Work 2 more Check My Work uses remaining Previous Gain on sale of investments 17,280X Changes in current operating assets and labilties Increase in accounts receivable v Increase in inventories Increase in accounts payable Decrease in accrued expenses payable 6,810 X 8770 V 4,770 X 20,000 X Net cash flow from operating activities Cash flows from investing activities: Cash recelved from sale of investments Cash paid for p dropdown land tr e 84500 X Cash flows from financing activities Cash received from sale of common stock 4,750 38.720 X Cash paid for dividends Net cash flow from financing activities Change in cash V Cash at the beginning of the year Cash at the end of the year 56,030 16,690 246,750 $ 263,440 Feedback Check My Wark Compute the increases and decreases in thie current asset/liablity accounts over the period. How do these increases or decreases impact the amount of cash a company has? Were there any Check My Work 2 more Check My Work uses remaining PreviousNext