The comparative balance sheet of Rucker Photography Products Inc. for December 31, 2014 and 2013, is as follows:

		Dec. 31, 2014		Dec. 31, 2013
Assets
Cash		$239,700		$223,490
Accounts receivable (net)		86,830		80,270
Inventories		245,120		237,640
Investments		0		92,070
Land		125,730		0
Equipment		270,450		210,110
Accumulated depreciation-equipment		(63,320)		(56,660)
	Total	$904,510		$786,920
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$163,720		$155,020
Accrued expenses payable (operating expenses)		16,280		20,460
Dividends payable		9,050		7,080
Common stock, $10 par		48,840		38,560
Paid-in capital in excess of par-common stock		183,620		107,020
Retained earnings		483,000		458,780
	Total	$904,510		$786,920

The income statement for the year ended December 31, 2014, is as follows:

Sales					$1,351,510
Cost of merchandise sold					556,500
Gross profit					$795,010
Operating expenses:
	Depreciation expense		$6,660
	Other operating expenses		701,840
		Total operating expenses			708,500
Operating income					$86,510
Other expense:
		Loss on sale of investments			(24,860)
Income before income tax					$61,650
Income tax expense					19,730
Net income					41,920

The following additional information was taken from the records:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $67,210 cash.

The common stock was issued for cash.

There was a $17,700 debit to Retained Earnings for cash dividends declared.

Required:

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Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.

Rucker Photography Products Inc.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
Cash paid for purchase of land Cash received from customers Cash received from sale of common stock Cash received from sale of investment Cash paid for dividends Correct 5				$ Correct 6
Less cash payments for merchandise Less decrease in inventories Less depreciation Less loss on sale of investments Less cash received from sale of common stock Correct 7		$ Correct 8
Less cash received from customers Less cash payments for operating expenses Less gain on sale of investments Less increase in accounts payable Less increase in accounts receivable Correct 9		Correct 10
Less cash paid for dividends Less cash paid for equipment Less cash paid for land Less cash payments for income taxes Less cash received from sale of common stock Correct 11		Correct 12		Correct 13
Net cash flow from operating activities						$ Correct 15
Cash flows from investing activities:
Cash received from customers Cash received from dividends Cash received from gain on sale of investments Cash received from sale of common stock Cash received from sale of investments Correct 17				$ Correct 18
Less cash received from customers Less cash paid for purchase of land Less cash payments for merchandise Less depreciation Less loss on sale of investments Correct 19		$ Correct 20
Less cash paid for dividends Less cash paid for purchase of equipment Less cash received from sale of common stock Less decrease in accounts receivable Less increase in inventories Correct 21		Correct 22		Correct 23
Net cash flow used for investing activities						Correct 25
Cash flows from financing activities:
Cash received from accounts receivable Cash received from sale of common stock Cash received from sale of investments Cash paid for depreciation Cash paid for merchandise Correct 27				$ Correct 28
Less cash paid for purchase of land Less cash paid for dividends Less cash paid for purchase of equipment Less cash payments for merchandise Less cash paid for depreciation Correct 29				Correct 30
Net cash flow provided by financing activities						Correct 32
Decrease in cash Increase in cash Correct 33						$ Correct 34
Cash at beginning of the year						Correct 36
Cash at end of the year						$ Correct 38