The comparative balance sheet of Flack Inc. for December 31, 2014 and 2013, is as follows:

	Dec. 31, 2014			Dec. 31, 2013
Assets
Cash	$ 203,160			$ 192,610
Accounts receivable (net)	74,860			68,680
Inventories	211,000			202,880
Investments	0			78,940
Land	108,150			0
Equipment	230,580			181,560
Accumulated depreciation-equipment	(54,800)			(48,900)
	$772,950			$675,770
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 139,790			$ 133,130
Accrued expenses payable (operating expenses)	14,060			17,570
Dividends payable	7,600			6,100
Common stock, $1 par	41,300			31,760
Paid-in capital in excess of parcommon stock	157,100			91,900
Retained earnings	413,100			395,310
	$772,950			$675,770

The income statement for the year ended December 31, 2014, is as follows:

Sales		$1,282,780
Cost of merchandise sold		788,910
Gross profit		$ 493,870
Operating expenses:
Depreciation expense	$ 5,900
Other operating expenses	418,190
Total operating expenses		424,090
Operating income		$ 69,780
Other income:
Gain on sale of investments		13,200
Income before income tax		$ 82,980
Income tax expense		33,190
Net income		$ 49,790

The following additional information was taken from the records:

The investments were sold for $92,140 cash.

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $32,000 debit to Retained Earnings for cash dividends declared.

Required:

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Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.

Flack Inc.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
Cash received from customers Cash received from dividends Cash received from sale of common stock Cash received from sale of investments Cash received from depreciation Correct 5				$ Correct 6
Less cash payments for merchandise Less decrease in inventories Less depreciation Less loss on sale of investments Less dividends Correct 7		$ Correct 8
Less cash paid for land Less cash payments for operating expenses Less cash paid for equipment Less gain on sale of investments Less increase in accounts payable Correct 9		Correct 10
Less cash paid for dividends Less cash paid for equipment Less cash paid for land Less cash payments for income taxes Less cash received from customers Correct 11		Correct 12		Correct 13
Net cash flow from operating activities						$ Correct 15
Cash flows from investing activities:
Cash received from customers Cash received from sale of common stock Cash received from sale of investments Cash received from retained earnings Gain on sale of investments Correct 17				$ Correct 18
Less cash paid for dividends Less cash paid for land Less cash paid for merchandise Less depreciation Less gain on sale of land Correct 19		$ Correct 20
Less cash paid for equipment Less cash payments for operating expenses Less cash payment for income taxes Less cash received from customers Less decrease in accounts receivable Correct 21		Correct 22		Correct 23
Net cash flow used for investing activities						Correct 25
Cash flows from financing activities:
Cash received from customers Cash received from dividends Cash received from depreciation Cash received from sale of common stock Cash received from sale of investments Correct 27				$ Correct 28
Less cash paid for dividends Less cash paid for equipment Less cash payments for income taxes Less cash paid for land Less decrease in inventories Correct 29				Correct 30
Net cash flow provided by financing activities						Correct 32
Decrease in cash Increase in cash Correct 33						$ Correct 34
Cash at beginning of the year						Correct 36
Cash at end of the year						$ Correct 38