Statement of Cash FlowsIndirect Method

The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2014 and 2013, is as follows:

		Dec. 31, 2014		Dec. 31, 2013
Assets
Cash		$202		$67
Accounts receivable (net)		115		84
Inventories		72		46
Land		165		191
Equipment		93		73
Accumulated depreciation-equipment		(25)		(13)
	Total	$622		$448
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$78		$67
Dividends payable		12		-
Common stock, $10 par		41		21
Paid-in capital in excess of par-common stock		90		52
Retained earnings		401		308
	Total	$622		$448

The following additional information is taken from the records:

1. Land was sold for $65.

2. Equipment was acquired for cash.

3. There were no disposals of equipment during the year.

4. The common stock was issued for cash.

5. There was a $134 credit to Retained Earnings for net income.

6. There was a $41 debit to Retained Earnings for cash dividends declared.

a. 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 and for any adjustments, if required.

b. Was Tru-Built Construction Inc.'s cash flow from operations more or less than net income? Less or More.

Tru-Built Construction Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Net income 134 Adjustments to reconcile net income to net cash flow from operating activities Increase In accoun Decrease in invent- Changes in current operating assets and liabilities Depreciation Decrease in accour Net cash flow from operating activities Cash flows from investing activities Cash received from Less cash paid for Net cash flow provided by investing activities Cash flows from financing activities Cash received fron Less cash paid for Net cash flow provided by financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year