The comparative balance sheet of Lankau Enterprises Inc. at December 31, 2014 and 2013 is as follow:

Dec.31, 2014 Dec. 31, 2013

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Assets

Cash $219,900 $269,700

Accounts receivable (net).. $336,900 $363,000

Merchandise inventory... $482,400 $448,800

Prepaid expenses. $20,100 $14,400

Equipment... $982,500 $805,500

Accumulated depreciation- equipment. (256,200) (198,300)

$1,785,600 $1,703,100

Liabilities and Stockholders Equity

Accounts payable (merchandise creditors) $375,300 $356,400

Mortgage note payable... $0 $504,000

Common Stock, $25 par. $411,000 $36,000

Paid-in-capital: Excess of issue price over par- common stock.. $705,000 $480,000

Retained earnings 294,300 326,700

$1,785,600 $1,703,100

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014are as follows:

Net income, $198,000 Depreciation reported on the income statement, $125,100. Equipment was purchased at a cost of $244,200 , and fully depreciated equipment costing $67,200 was discarded, with no salvage realized. The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty. 15,000 shares of common stock were issued at $40 for cash. Cash dividends declared and paid, $230,400

Instructions

Prepare a statement of cash flow, using the indirect method of presenting cash flows from operating activities.