use the direct method

GAZY CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 Add al A , AIR, inventory PPIIR 1 20 2015 2014 supplies Box 100 (Cox 801 Assets Cash Accounts receivable... Merchandise inventory Prepaid expenses..... Total current asset... Equipment. Accum depreciation Equipment $123,450 77.100 240.500 15.100 456.250 262.250 (110,7501 $607.750 $61.550 1.750 250,700 17.000 410.000 200.000 195,000 5515.000 Total assets GAZY CORPORATION Income Statement For Year Ended December 31, 2015 $102,000 Liabilities and Equity Accounts payable Short-term notes payable Total current abilities Long term notes payable Totale .. $1,185,000 595,000 590,000 10.000 $ 17.750 15.000 32.750 100,000 132.750 112.000 77,500 189,500 Cost of goods sold.... Gross profit.. Operating expenses. Depreciation expense Other expenses Total operating expenses. $ 38,600 362.350 101.450 188550 215.000 200,000 Equity Common stock, 35 par. Paid in capital in excess... of par common stock. Retained earnings .... Total abilities and equity 30.000 230.000 5607750 Other als losses Loss on sale of equipment Income before taxes Income taxes expense. Net Income .......... 125.500 $515.000 12.100) 186,450 28,350 150.100 $ Additional Information on Year 2015 Transactions a. The loss on the cash sale of equipment was $2,100 (details in b). b. Sold equipment costing 551,000, with accumulated depreciation of $22,850, for $26,050 cash. c. Purchased equipment costing $113,250 by paying $43.250 cash and signing a long-term note payable for the balance d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $47,500 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $15 cash per share. 9. Declared and paid cash dividends of $53,600. Required 1. Prepare a complete statement of cash flows reportite complete statement of cash flows; report its operating activities using the Disclose any noncash investing and financing activities in a note. direct method. Analysis Components 2. Analyze and discuss the statement of cash flows pe ad discuss the statement of cash flows prepared in part 1, giving special attention to the wisdom of the cash dividend payment. DV Cr Check Cash from operating activities. $130.200