The comparative balance sheet of Portable Luggage Company at December 31, 2008 and 2007, is as follows: Dec 31 2008 Dec 31 2007

Assets

Cash 175,900 143,200

Accounts Recievable 264,100 235,000

Inventories 352,300 405,800

Prepaid Expenses 12,500 10,000

Land 120,000 120,000

Buildings 680,000 450,000

Accumulated depreciation buildings (185,000) (164,500)

Machinery and equipment 310,000 310,000

Accumulated depreciation machine/e (85,000) (76,000)

Patents 42,500 48,000

1,687,300 1,481,500

Liabilities and Stockholders Equity

Accounts payable marchandise creditors332,300 367,900

Dividends payable 13,000 10,000

Salaries payable 30,200 34,600

Morgage Note payable due 2015 90,000

Bonds payable 154,000

Common stock 1 par 24,000 20,000

Paid in capital in excess of par com stock 200,000 50,000

Retained earnings 997,800 845,000

1,687,300 1,481,500

An examination of the income statement and the accounting records revealed the following additional information applicable to 2008: 1. Net income, $204,800. 2. Depreciation expense reported on the income statement: buildings, $20,500; machinery and equipment, $9,000. 3. Patent amortization reported on the income statement, $5,500. 4. A building was constructed for $230,000. 5. A mortgage note for $90,000 was issued for cash. 6. 4,000 shares of common stock were issued at $38.50 in exchange for the bonds payable. 7. Cash dividends declared, $52,000. Prepare a statement of cash flows on the spreadsheet provided for this problem, using the indirect method of presenting cash flows from operating activities