The comparative balance sheet of Dowling Company for

December $31,2016$ and $2015$ is as follows:

Dowling Company

Comparative Balance Sheet

December $31,2016$ and $2015$

Assets

Cash

Accounts Recieveable $($net$)$

Inventory

Prepaid expenses

Investments $($long$-$term$)$

land

Buildings

Accumulated depreciation $-$ Building

Machisery and equipment

Accumulated depreciation $-$ machisery and equipment

Patents

Total Assets

Liabilities and Stockholders' Equity

Accounts payables $($merchandise creditor$)$

Accrued expenses payable $($operatingg expenses$)$

lncome taxes payable

Dividends payable

Mortgage not payable, due in $10$ years

Bonds payable

Common stock, $$30$ par

Excess of issue price of par $-$ common stack.

Retained Earnings

Total Liabilities and Stockholders" Equity

Dowling Company

lncome Statement

For the year ending December $31,2016$

Sales

Cost of merchandise sold

Gross Profit

Operating Expenses:

$1\mathrm{.}100\mathrm{.}000$

$21000$

$390\mathrm{.}000$

$390\mathrm{.}000$

An examination of the accounting records revealed the

following additional information applicable to $2016$:

a$)$ Land costing $$15,000$ was sold for $$15,000$

b$)$ A mortgage note was issued for $$40,000$

c$)$ A building costing $$115,000$ was constructed

d$)2,500$ shares of common stock were issued at $$40$ in

exchange for the bonds payable

e$)$ Cash dividends declared were $$74,670$

Instruction:

& Use the above information to complete the statement

of cash flow using the indirect and direct methods