The comparative balance sheet of Tru-Built Construction for December 31, 2014 and 2013, is as follows:
Dec. 31, 2014 Dec. 31, 2013
Assets
Cash $159 $52
Accounts receivable (net) 90 65
Inventories 57 36
Land 130 147
Equipment 73 57
Accumulated depreciation-equipment (20) (10)
Total $489 $347
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $62 $52
Dividends payable 10 -
Common stock, $10 par 32 16
Paid-in capital in excess of par-common stock 74 41
Retained earnings 311 238
Total $489 $347
The following additional information is taken from the records:
Land was sold for $43.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
Net income was $105.
Dividends declared were $32.
Depreciation expense is the change in accumulated depreciation.
a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
b. Was Tru-Built Construction Inc.'s cash flow from operations more or less than net income?