The comparative balance sheet of Livers Inc. for December $31,20$Y$3$ and $20$Y$2,$ is shown as follows:

$1$

Dec. $31,20$Y$3$

Dec. $31,20$Y$2$

$2$

Assets

$3$

Cash

$$155,000\mathrm{.}00$

$$150,000\mathrm{.}00$

$4$

Accounts receivable $($net$)$

$450,000\mathrm{.}00$

$400,000\mathrm{.}00$

$5$

Inventories

$770,000\mathrm{.}00$

$750,000\mathrm{.}00$

$6$

Investments

$0\mathrm{.}00$

$100,000\mathrm{.}00$

$7$

Land

$500,000\mathrm{.}00$

$0\mathrm{.}00$

$8$

Equipment

$1,400,000\mathrm{.}00$

$1,200,000\mathrm{.}00$

$9$

Accumulated depreciation$-$equipment

$(600,000\mathrm{.}00)$

$(500,000\mathrm{.}00)$

$10$

Total assets

$$2,675,000\mathrm{.}00$

$$2,100,000\mathrm{.}00$

$11$

Liabilities and Stockholders$$ Equity

$12$

Accounts payable $($merchandise creditors$)$

$$340,000\mathrm{.}00$

$$300,000\mathrm{.}00$

$13$

Accrued expenses payable $($operating expenses$)$

$45,000\mathrm{.}00$

$50,000\mathrm{.}00$

$14$

Dividends payable

$30,000\mathrm{.}00$

$25,000\mathrm{.}00$

$15$

Common stock, $$4$ par

$700,000\mathrm{.}00$

$600,000\mathrm{.}00$

$16$

Paid$-$in capital in excess of par$$common stock

$200,000\mathrm{.}00$

$175,000\mathrm{.}00$

$17$

Retained earnings

$1,360,000\mathrm{.}00$

$950,000\mathrm{.}00$

$18$

Total liabilities and stockholders$$ equity

$$2,675,000\mathrm{.}00$

$$2,100,000\mathrm{.}00$

Additional data obtained from an examination of the accounts in the ledger for $20$Y$3$ are as follows:

a$.$ The investments were sold for $$175,000$ cash.

b$.$ Equipment and land were acquired for cash.

c$.$ There were no disposals of equipment during the year.

d$.$ The common stock was issued for cash.

e$.$ There was a $$500,000$ credit to Retained Earnings for net income.

f$.$ There was a $$90,000$ debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities.

Statement of Cash Flows Instructions

Livers Inc.

Statement of Cash Flows

For the Year Ended December $31,20$Y$3$

$1$

Cash flows from $($used for$)$ operating activities:

$2$

Net income

$$500,000\mathrm{.}00$

$3$

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

$4$

Depreciation

$100,000\mathrm{.}00$

$5$

Gain on sale of investments

$(75,000\mathrm{.}00)$

$6$

Changes in current operating assets and liabilities:

$7$

Increase in inventories

$(20,000\mathrm{.}00)$

$8$

Increase in accounts payable

$40,000\mathrm{.}00$

$9$

Decrease in accrued expenses payable

$(5,000\mathrm{.}00)$

$10$

Increase in accounts receivable

$(50,000\mathrm{.}00)$

$11$

Net cash flows from operating activities

$$490,000\mathrm{.}00$

$12$

$13$

Cash flows from $($used for$)$ investing activities:

$14$

Cash received from sale of investments

$$175,000\mathrm{.}00$

$15$

Cash paid for purchase of equipment

$16$

Cash paid for purchase of land

$17$

Net cash flows used for investing activities

$(525,000\mathrm{.}00)$

$18$

$19$

Cash flows from $($used for$)$ financing activities:

$20$

Cash received from sale of common stock

$$125,000\mathrm{.}00$

$21$

Cash paid for dividends

$22$

Net cash flows from financing activities

$23$

$24$

Cash balance, January $1,20$Y$3$

$25$

Cash balance, December $31,20$Y$3$