The following information is provided for the Loofa Corporation.

Balance SheetsDecember 31, 20XXDecember 31, 20XWAssetsCash$57,345$21,845Accounts receivable43,69049,150Inventory114,68598,300Equipment101,03581,920Less: Accumulated depreciation24,57516,385Net equipment76,46065,535Total assets$292,180$234,830Liabilities and EquityAccounts payable$46,420$27,305Taxes payable5,46510,920Common stock180,220163,835Retained earnings60,07532,770Total liabilities and equity$292,180$234,830

During 20XX, the following occurred:

1. Net income was $54,610.
2. Equipment was purchased for cash, and no equipment was sold.
3. Shares were sold for cash.
4. Dividends were declared and paid.

a.Prepare statement of cash flows for the Loofa Corporation.(Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.)

Loofa Corporation

Statement of Cash FlowsFor the Year Ended December 31, 20XXOperating Activities:

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Net income

Net loss

$Add items not requiring an outlay of cash:

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Increase in accounts receivable

Decrease in accounts receivable

Increase in accounts payable

Increase in inventory

Decrease in taxes payable

Increase in taxes payable

Decrease in inventory

Amortization expense

Decrease in accounts payable

Cash flow from operationsChanges in non-cash working capital:

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Decrease in accounts receivable

Increase in taxes payable

Decrease in inventory

Increase in accounts receivable

Decrease in accounts payable

Amortization expense

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Increase in inventory

Increase in taxes payable

Decrease in inventory

Increase in accounts receivable

Decrease in accounts payable

Amortization expense

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Increase in accounts payable

Increase in taxes payable

Decrease in inventory

Increase in accounts receivable

Decrease in accounts payable

Amortization expense

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Decrease in taxes payable

Increase in taxes payable

Decrease in inventory

Increase in accounts receivable

Decrease in accounts payable

Amortization expense

Net Change in non-cash working capitalCash

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provided by

used in

operating activitiesInvesting activities:

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Increase in equipment

Decrease in accounts receivable

Increase in inventory

Increase in accounts payable

Decrease in taxes payable

Increase in taxes payable

Decrease in inventory

Increase in accounts receivable

Decrease in accounts payable

Cash

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provided by

used in

investing activitiesFinancing activities:

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Issue of common stock

Increase in equipment

Amortization expense

Decrease in accounts receivable

Increase in inventory

Increase in accounts payable

Decrease in taxes payable

Increase in taxes payable

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Common stock dividends paid

Increase in equipment

Amortization expense

Decrease in accounts receivable

Increase in inventory

Increase in accounts payable

Decrease in taxes payable

Increase in taxes payable

Cash

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used in

provided by

financing activities

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Net Decrease in cash

Net increase in cash

Cash, beginning of yearCash, end of year$