The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows:

		Dec. 31, 20Y4		Dec. 31, 20Y3
Assets
Cash		$443,240		$360,920
Accounts receivable (net)		665,280		592,200
Inventories		887,880		1,022,560
Prepaid expenses		31,640		25,200
Land		302,400		302,400
Buildings		1,713,600		1,134,000
Accumulated depreciationbuildings		(466,200)		(414,540)
Machinery and equipment		781,200		781,200
Accumulated depreciationmachinery and equipment		(214,200)		(191,520)
Patents		106,960		112,000
	Total assets	$4,251,800		$3,724,420
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$837,480		$927,080
Dividends payable		32,760		25,200
Salaries payable		78,960		87,080
Mortgage note payable, due in nine years		224,000		0
Bonds payable		0		390,000
Common stock, $5 par		200,400		50,400
Paid-in capital: Excess of issue price over parcommon stock		366,000		126,000
Retained earnings		2,512,200		2,118,660
	Total liabilities and stockholders' equity	$4,251,800		$3,724,420

An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:

1. Net income, $524,580.
2. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
3. Patent amortization reported on the income statement, $5,040.
4. A building was constructed for $579,600.
5. A mortgage note for $224,000 was issued for cash.
6. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
7. Cash dividends declared, $131,040.

Required:

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.

Harris Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y4

Cash flows from operating activities:
Cash from dividendsCash from issuance of mortgage noteCash received from customersDepreciationNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Cash paid for dividendsCash received from issuance of mortgage noteDecrease in accounts receivableDepreciationIncrease in accounts receivableDepreciation	Depreciation
Cash paid for construction of buildingCash paid for dividendsDecrease in inventoriesIncrease in accounts payablePatent amortizationPatent amortization	Patent amortization
Changes in current operating assets and liabilities:
Decrease in accounts receivableDepreciationIncrease in accounts receivableIncrease in inventoriesIssuance of common stock to retire bondsIncrease in accounts receivable	Increase in accounts receivable
Cash received from issuance of mortgage noteDecrease in accounts receivableDecrease in inventoriesIncrease in accounts payableIncrease in inventoriesDecrease in inventories	Decrease in inventories
Cash received from issuance of mortgage noteDecrease in prepaid expensesIncrease in accounts payableIncrease in prepaid expensesIncrease in salaries payableIncrease in prepaid expenses	Increase in prepaid expenses
Cash paid for dividendsDepreciationDecrease in accounts payableIncrease in accounts payablePatent amortizationIncrease in accounts payable	Increase in accounts payable
Decrease in accounts receivableDecrease in salaries payableDepreciationIncrease in salaries payableIssuance of common stock to retire bondsDecrease in salaries payable	Decrease in salaries payable
Net cash flow from operating activities		$fill in the blank 17
Cash flows from investing activities:
Cash paid for construction of buildingCash received from issuance of mortgage noteCash received from customersCash received from patent amortizationCash paid for construction of building	$Cash paid for construction of building
Net cash flow used for investing activities		fill in the blank 20
Cash flows from financing activities:
Cash received from issuance of mortgage noteCash received from decrease in accounts payableCash paid for depreciationCash from increase in prepaid expenses	$- Select -
Cash paid for dividendsCash paid for construction of buildingDepreciationIncrease in accounts receivableIssuance of common stock to retire bondsIssuance of common stock to retire bonds	Issuance of common stock to retire bonds
Net cash flow from financing activities		fill in the blank 25
Cash received from issuance of mortgage noteChange in cashDecrease in accounts receivableDepreciationIncrease in accounts receivable		$- Select -
Cash at beginning of the year		fill in the blank 28
Cash at end of the year		$fill in the blank 29
Schedule of Non cash Financing and investing Activities:
Cash paid for construction of buildingCash received from issuance of mortgage noteDepreciationIssuance of common stock to retire bondsPatent amortization		$- Select -