The Income Statement, Statement of Retained Earnings, and Balance Sheet for Mortonson Company are presented below and on the following page. Additional information is as follows: 1. Equipment that cost $100 and had accumulated depreciation of $60 was sold for $50. New equipment with a cost of $410 was purchased. 2. Available-for-Sale Securities were sold at cost. 3. Common stock was issued at par for cash. 4. Cash dividends of $100 were paid. 5. Depreciation expense of $90 and amortization expense of $25 are included in operating expenses. Required: Compute the worksheet to compute: A. Cash flows from operating activities: $ B. Cash flows from investing activities: $_ C. Cash flows from financing activities: $_ Mortonson Company Income Statement For the Year Ended December 31 Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other: Gain on Sale of Equipment $ 10 Interest Expense (30) Income before Taxes Income Tax Expense Net Income $ 3,800 (1,200) $ 2,600 (1,434) $ 1,166 $ (20) 1,146 (818) 328 $ Mortonson Company Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Add: Net Income Less: Dividends Declared Retained Earnings, December 31 $ 310 328 (110) $ 528 Current Year Prior Year $ 333 10 670 690 $ 1,703 $ 100 50 500 560 $1,210 Mortonson Company Balance Sheet December 31 Assets Current Assets: Cash Investments in Available-for-Sale Securities Accounts Receivable Inventory Total Current Assets Long-Term Assets: Land Buildings & Equipment Accumulated Depreciation Patents (less amortization) Total Long-Term Assets Total Assets Liabilities & Equity Current Liabilities: Accounts Payable Income Taxes Payable Interest Payable Dividends Payable Total Current Liabilities Long-Term Notes Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 150 910 (150) 205 $ 1,115 $ 2,818 70 600 (120) 230 $ 780 $ 1,990 $ 405 30 $ 420 40 10 20 $ 490 500 $ 990 10 $ 460 520 $ 980 $1,300 528 $ 1,828 $ 2,818 $ 700 3 10 $1,010 $1,990 Worksheet to compute cash flows