TEL The following financial statements were drawn from the records of Adams Shoes: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $116,093 $ 26, 290 Accounts receivable 55, 109 63,810 Merchandise inventory 129,570 117,230 Notes receivable 30,800 Equipment 143,500 252,300 Accumulated depreciation-equipment (76,293) (143, 280) Land 85,500 54,000 Total assets $453,479 $ 401, 150 Liabilities Accounts payable $ 43,089 $ 49,860 Salaries payable 26,025 20,820 Utilities payable 511 1,022 Interest payable 1, 710 Notes payable (long-term) 58,500 Common stock 294,800 239,000 Retained earnings 89,054 30.238 Total liabilities and equity $453,479 $401, 150 Income Statement For the Year Ended December 31. Year 2 Sales revenue $ 500, 360 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 580, 360 Cost of goods sold (288,178) Gross margin 292, 182 Operating expenses Salaries expense (184,830) Depreciation expense (17,383) Utilities expense (12,810) Operating income 77, 159 Nonoperating items Interest expense (3,256) Loss on the sale of equipment (1.680) Net income $ 72,223 Additional information 1. Sold equipment costing $108.800 with accumulated depreciation of $84,370 for $22,750 cash. 2. Pald a $13.407 cash dividend to owners. Required: Analyze the date and prepare a statement of cosh flows using the direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) ADAMS SHOES nament of Cash Flow For the wel Ended December Year Cash Flows Front Operating Active Cash recepte trommer Payments for ADAMS SHOES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash Flows From Operating Activities: Cash receipts from customers Cash Payments for Total cash outflows 0 0 Cash Flown from Investing Activities Cash Flows from Financing Activities 0 Ending cash balance