Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 2013 and 2012, is shown as follows: Dec. 31, 2043 Dec. 31, 2042 Assets Cash $265,350 $244,560 Accounts receivable (net) 96,130 87,840 Inventories 271,360 260,070 Investments 0 100,750 Land 139,180 0 Equipment 299,390 229,920 Accumulated depreciation-equipment (70,090) (62,000) Total assets $1,001,320 $861,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $181,240 $169,640 Accrued expenses payable (operating expenses) 18,020 22,390 Dividends payable 10,010 7,750 Common stock, $10 par 54,070 42,200 Paid-in capital: Excess of issue price over par-common stock 203,270 117,120 Retained earnings 534,710 502,040 Total liabilities and stockholders' equity $1,001,320 $861,140 Additional data obtained from an examination of the accounts in the ledger for 2013 are as follows: a. The investments were sold for $117,880 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 $73,140 credit to Retained Earnings for net income. f. There was a $40,470 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect 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, 2013 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable O 01 000 000 00 o Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipm Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year