The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

a. The investments were sold for $210,000 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 $180,000 debit to Retained Earnings for cash dividends declared.

Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

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Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash.. $ 186,000 $ 180,000 Accounts receivable (net). 540,000 924,000 480,000 Inventories. 900,000 Investments.. 120,000 Land... 600,000 Equipment... Accumulated depreciation-equipment.. Total assets.. 1,680,000 1,440,000 (720,000) $3,210,000 (600,000) $2,520,000 Liabilities and Stockholders' Equity $ 408,000 $ 360,000 Accounts payable... Accrued expenses payable.. Dividends payable.... Common stock, $4 par.. Paid-in capital in excess of par.. Retained earnings.. Total liabilities and stockholders' equity.. 54,000 60,000 36,000 30,000 840,000 720,000 210,000 1,140,000 240,000 1,632,000 $3,210,000 $2,520,000 The income statement for the year ended December 31, 20Y3, is as follows: $3,600,000 Sales... 1,680,000 Cost of merchandise sold.. Gross profit... Operating expenses: Depreciation expense... Other operating expenses. Total operating expenses. Income from operations... $1,920,000 $ 120,000 1,140,000 1,260,000 $ 660,000 Other income: 90,000 Gain on sale of investments. $ 750,000 Income before income tax.. 150,000 Income tax expense. $ 600,000 Net income..