The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec 31, 2013 Dec 31, 20Y2 2 Assets $ Cash $155,000.00 $150,000.00 * Accounts receivable (net) 450,000.00 400,000.00 15 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 Land 500,000.00 0,00 * Equipment 1,200,000.00 1.400,000,00 (600,000.00) Accumulated depreciation equipment (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 $340,000.00 $300,000.00 45,000.00 50,000.00 Liabilities and Stockholders' Equity 12 Accounts payable 15 Accrued expenses payable 14 Dividends payable 15 Common stock, 54 par 16 Paid-in capital: Excess of issue price over par-common stock 30,000.00 25,000.00 600,000.00 700,000.00 200,000.00 175,000.00 16 Paid-in capital: Excess of issue price over 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 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 $500,000 credit to Retained Earnings for net income. F. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. Labels and Amount Descriptions Labels and Amount Descriptions Cash used for dividends Cash paid for merchandise Cash used for purchase of equipment Cash used for purchase of land Cash received from customers Cash from sale of common stock Cash from sale of investments December 31, 20Y3 Decrease in accounts payable Decrease in accounts receivable Decrease in accrued expenses payable Decrease in inventories Decrease in cash Depreciation For the Year Ended December 31, 20Y3 Gain on sale of investments Increase in accounts payable Increase in accounts receivable Net cash flow from operating activities Net cash flow used for operating activities Net cash flow from investing activities Net cash flow used for investing activities Net cash flow from financing activities Net cash flow used for financing activities Net income Statement of Cash Flows Shaded celis have feedback. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outlow for each section, if required. Navaria Inc. Score: 72/174 Statement of Cash Flows For the Year Ended December 31, 20Y3 Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. Navaria Inc. Score: 72/174 Statement of Cash Flows For the Year Ended December 31, 20Y3 2 $500,000.00 4 1 Cash flows from operating activities: Net income 3 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 5 Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable 100,000.00 (75,000.00) 7 (50,000.00) (20,000.00) 8 Increase in inventories 9 Increase in accounts payable 40,000.00 V 9 > Increase in accounts payable Decrease in accrued expenses payable net cash from investing activities 40,000.00 (5,000.00) 10 $(525,000.00) 11 12 13 Cash flows from (used for) investing activities 14 15 16 17 18 19 Cash flows from (used for) financing activities: 20 21 22 25 24 Cash at the beginning of the year 25 Cash at the end of the year Points: 14.48/35