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The following financial statements were drawn from the records of Rundle Shoes Balance Sheets As of December 31 Year 2 Year 1 tes Assets Cash

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The following financial statements were drawn from the records of Rundle Shoes Balance Sheets As of December 31 Year 2 Year 1 tes Assets Cash Accounts receivable Merchandise Inventory Notes receivable Equipment Accumulated depreciation equipment $112,212 56,698 129,791 $ 25,700 65,650 117,430 28,100 250, 280 (135,120) 53 500 $ 405,460 144,700 (70, 197) 84,500 $457,704 Land $ 40,689 29,363 518 Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-tere) Common stock Retained earnings Total liabilities and equity e 298,200 89,014 $457,704 $ 46,990 23,490 1,096 2,060 61,500 241,100 29,284 $405,460 $ 581,510 (288,749) 292,761 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Grass margin Operating expenses Salaries expense Depreciation expense Utilities expense Operating income Nonoperating Items Interest expense Loss on the sale of equipment Net income (185,370) (17,347) (11.510) 78,534 (3,408) (1.788) $ 73,346 Additional Information 1. Sold equipment costing $105,500 with accumulated depreciation of $82,270 for $21.450 cash 2 Paid a $13,616 cash dividend to owners. Additional Information 1. Sold equipment costing $105,500 with accumulated depreciation of $82 270 for $21.450 cash. 2. Paid a $13,616 cash dividend to owners Required: Analyze the data and prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) RUNDLE SHOES Statement of Cash Flows For the Year Ended December 31. Year 2 Cash Flows From Operating Activities Cash receipts from customers Cash Payments for Total cash outflows 0 Cash Flows from Investing Activities Cash Flows from Financing Activities 0 0 Ending cash balance $

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