Refer to Gazelle Corporation's financial statements and related information in Problem.

In problem

Required
Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investing and financing activities in a note.

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GAZELLE CORPORATION Comparative Balance Sheets December 31,2015 and 2014 20 15一 2014 Assets Cash Accounts receivable. Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment0,70 Total assets $123,450 61,550 77,100 80,750 240,600 250,700 15,10017,000 456,250 410,000 262,250 200,000 (95,000) GAZELLE CORPORATION Income Statement For Year Ended December 31,2015 $607.750 SS15,000 Sales $1,185,000 595,000 590,000 Liabilities and Equity Accounts payable17,750 $102,000 Gross profit. Short-term notes payable Total current liabilities.. Long-term notes payable Total liabilities Cost of goods sold 15,00010,000 Operating expenses 32,750 ,000 Depreciation expense $ 38,600 132,750 189,500 Total operating expenses 401,450 88,550 Equity Common stock, $5 par Paid-in capital in excess 215,000 200,00 Other gains (losses) Loss on sale of equipment of par, common stock Retained earnings Total liabilities and equity (2,100) 186,450 28,350 $ 158,100 30,000 0 Income before taxes 230,000 125,500 Income taxes expense.... 5607,750 $515,000 Net income