The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2013, is as follows:

An examination of the income statement and the accounting records revealed the following additional information applicable to 2014:
a. Net income, $524,580.
b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
c. Patent amortization reported on the income statement, $5,040.
d. A building was constructed for $579,600.
e. A mortgage note for $224,000 was issued for cash.
f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
g. Cash dividends declared, $131,040.

Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

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Dec. 31, 2014 Dec. 31, 2013 Assets Cash Accounts receivable (net) S 443,240 665,280 887,880 31,640 302,400 1,713,600 (466,200) 781,200 (214,200) 106,960 4,251,800 360,920 592,200 1,022,560 25,200 302,400 1,134,000 (414,540) 781,200 (191,520) 112,000 $3,724,420 Land Accumulated depreciation-machinery and equipment. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $837,480 32,760 78,960 224,000 0 200,400 366,000 2,512,200 $4,251,800 927,080 25,200 87,080 Bonds payable. 390,000 50,400 126,000 2,118,660 53,724,420 Paid-in capital: Excess of issue price over par common stock.......