The comparative balance sheet of Lim Garden Supplies Inc. for December 31, 2010 and
2011, is as follows:

The income statement for the year ended December 31, 2011, is as follows:

The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $196,000 cash.
d. The common stock was issued for cash.
e. There was a $144,000 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, 2011 Dec. 31, 2010 Assets $ 220,640 330,880 464,800 $ 227,700 304,800 454,600 144,000 Cash Accounts receivable (net). Inventories Investments Land 320,000 408,000 Equipment . Accumulated depreciation 328,000 (160,500) $1,583 820 (122,800) $1,336,300 Liabilities and Stockholders' Equity $ 360,000 22,600 33,600 16,000 320,000 831,620 $ 322,200 Accounts payable (merchandise creditors).. Accrued expenses payable (operating expenses) Dividends payable Common stock, Paid-in capital in excess of par-common stock Retained earnings 26,400 30,400 8,000 160,000 789,300 $1,583,820 $1,336,300