The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012, is as follows:

The income statement for the year ended December 31, 2013, is as follows:

The following additional information was taken from the records:
a. The investments were sold for $105,000 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 $36,000 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, 2013 Dec. 31, 2012 Assets 234,660 85,440 240,660 0 123,000 264,420 62,400) $885,780 $219,720 78,360 231,420 90,000 207,420 (55,500) $771,420 Liabilities and Stockholders' Equity $151,860 19,740 7,200 36,000 105,000 451,620 $771,420 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) $159,180 15,840 9,000 48,000 180,000 473,760 $885,780 . Paid-in capital in excess of par-common stock.. . . $1,508,520 928,320 580,200 Gross profit .. .. Operating expenses: $6,900 491,400 Depreciation expense 498,300 $ 81,900 Operating income.。。... Other income: 15,000 S 96,900 38,760 S 58,140