The comparative balance sheet of Rucker Photography Products Inc. for December 31, 2011 and 2010, 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 $88,000 cash.
d. The common stock was issued for cash.
e. There was a $10,000 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 $ 321,700 283,400 505,500 S 339,700 273,700 491,400 120,000 Cash Accounts receivable (net). Inventories. Investments Land 260,000 440,000 340,000 (100,200) Equipment Accumulated depreciation (122,200) $1,688,400 $1,464,600 Liabilities and Stockholders' Equity $ 385,900 31,700 4,400 20,000 208,000 1,038,400 $ 374,200 Accounts payable (merchandise creditors).. Accrued expenses payable (operating expenses) Dividends payable... Common stock, $1 par. Paid-in capital in excess of par-common stock. Retained earnings. 35,400 3,200 16,000 96,000 939,800 $1,688,400 $1,464,600