The comparative balance sheet of Home and Hearth Inc. for December 31, 2009 and 2008, is as follows:

The income statement for the year ended December 31, 2009, is as follows:

The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $110,000 cash.
d. The common stock was issued for cash.
e. There was a $21,600 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, 2009 Dec. 31, 2008 Assets 424,600 342,100 614,200 150,000 0 425,000 (125,300) $1,830,600 Accounts receivable (net).. Inventories Investments Land 354,200 631,900 325,000 550,000 (152,700) $2,110,500 Liabilities and Stockholders Equity Accounts payable (merchandise creditors) 482,400 39,600 5,500 24,000 260,000 1,299,000 $2,110,500 467,800 44,200 4,000 20,000 120,000 1,174,600 $1,830,600 Paid-in capital in excess of par-common stock Retained earnings .. . . Sales Cost of merchandise sold Gross profit Operating expenses: $3,745,700 1,532,500 $2,213,200 Depreciation expense 27,400 1,936,800 Other operating expenses Total operating expenses Operating income Other expense 1,964,200 249,000 Loss on sale of investments Income before income tax Income tax expense Net income (40,000) 209,000 63,000 146,000