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

The income statement for the year ended December 31, 2008, is 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 $60,000 debit to Retained Earnings for cash dividends declared.

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

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Dec. 31, 2008 Dec. 31, 2007 Assets 366,200 130,600 385,700 150,000 0 345,700 (92,500) $1,285,700 Cash Accounts receivable (net)... Inventories Investments Land 391,100 142,400 401,100 205,000 440,700 (104,000) $1,476,300 Accumulated depreciation-equipment ······.. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) . . 267,800 26,400 15,000 80,000 300,000 787,100 $1,476,300 S 253,100 32,900 12,000 60,000 175,000 752,700 $1,285,700 Common stock, $10 par Paid-in capital in excess of par-common stock. Sales Cost of merchandise sold Gross profit Operating expenses: $1,632,500 908,300 724,200 11,500 609,000 Depreciation expense Other operating expenses Total operating expenses 620,500 103,700 Operating income Other income: Gain on sale of investments Income before income tax Income tax expense Net income 25,000 S 128,700 34,300 $ 94,400