The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: 1 2 Dec. 31, 20Y3 Dec. 31, 2012 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 5 Inventories 6 Investments 7 Land 450,000.00 400,000.00 770,000.00 750,000.00 0.00 100,000.00 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 15.000.00 50.000.00 Instructions 11 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital in excess of par-common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 18 Total liabilities and stockholders' equity $2,675,000.00 $2,100,000.00 The income statement for the year ended December 31, 20Y3, is as follows: 1 Sales 2. Cost of goods sold 3 Gross profit $3,000,000.00 (1,400,000.00) $1,600,000.00 1 Sales 2 Cost of goods sold 3 Gross profit 4 Operating expenses: 5 Depreciation expense 6 Other operating expenses 7 Total operating expenses 8 Operating income 9 Other income: 10 Gain on sale of investments 11 Income before income tax 12 Income tax expense 13 Net income $3,000,000.00 (1,400,000.00) $1,600,000.00 $100,000.00 950,000.00 (1,050,000.00) $550,000.00 75,000.00 $625,000.00 (125,000.00) $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 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 $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign 1 Cash flows from (used for) operating activities: 2 3 4 6 7 Cash flows from (used for) investing activities: Livers Inc. Statement of Cash Flows (Label) Statement of Cash Flows 6 7 8 Cash flows from (used for) investing activities: 6 10 10 11 12 12 15 14 Cash flows from (used for) financing activities: 15 16 17 18 19 Cash balance, January 1, 20Y3 20 Cash balance, December 31, 2013