The comparative balance sheet of Gold Medal Sporting Goods Inc. for December 31, 2008 and 2007 is shown as follows.
Dec. 31,2008 Dec. 31,2007
Assets
Cash 391,100 366,200
Accounts Receivable (net) 142,400 130,600
Inventories 401,100 385,700
Investments 0 150,000
Land 205,000 0
Equipment 440,700 345,700
Accumulated depreciation-Equipment (104,000) (92,500)
1,476,300 1,285,700
Liabilities and stockholders equity
accounts payable(merchandise creditors) 267,800 253,100
accounts expenses(operating expenses) 26,400 32,900
dividends payable 15,000 12,000
common stock, 10 par 80,000 60,000
paid in capital in excess of par comm. stock 300,000 175,000
retained earnings 787,100 752,700
1,476,300 1,285,700
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 $94,400 credit to Retained Earnings for net income.
f. There was a $60,000 debit to Retained Earnings for cash dividends declared.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?