The comparative balance sheet of Gold Medal Sporting Goods Inc. for December 31, 2008 and 2007 is shown as follows:

The following additional information was taken from the records:
a. The investments were sold for $175,000 cash.
b. Equipment and land were acquired for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $94,400 credit to Retained Earnings for net income.
f. There was a $60,000 debit to Retained Earnings for cash dividends declared.

Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

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Dec. 31, 2008 Dec. 31, 2007 A ssets Cash 366,200 130,600 385,700 150,000 0 345,700 (92,500) $1,285,700 .. . 142,400 401,100 205,000 440,700 (104,000) $1,476,300 Liabilities and Stockholders Equity Accounts payable (merchandise creditors) Accrued expenses (operating expenses) .. 267,800 26,400 15,000 80,000 300,000 787,100 $1,476,300 253,100 32,900 12,000 60,000 175,000 752,700 $1,285,700 . Common stock, $10 par .