The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:

The income statement for the year ended December 31, 20Y3, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
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 $90,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

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Dec. 31, 20Y3 Dec. 31, 20Y2 Assets $ 150,000 400,000 750,000 100,000 1,200,000 500,000 $2,100,000 Liabilities and Stockholders'Equity $ 300,000 50,000 5,000 600,000 175,000 950,000 $2,100,000 45,000 30,000 Paid-in capital Excess of issue price over par-common stock . . . . . 200,000 $3,000,000 1,400,000 $1,600,000 Cost of goods sold. Operating expenses $100,000 950,000 1,050,000 550,000 Other income: le of investments Income before income tax Income tax expense Net income 75,000 625,000 125,000 $ 500,000 . . . . . . . . . . . . . . . .