The statement of financial position of Morin Cycle Co. at December 31, 2015 and 2014, is as follows:

The noncurrent asset, noncurrent liability, and shareholders' equity accounts for 2015 are as follows:

The company realized $87,000 cash from the above sale transaction.

The above acquisition was completed with cash.

The January 26 transaction was retirement of equipment.
The August 11 purchase was a cash transaction.

On December 7, Morin Cycle issued 11,000 common shares at $18.35 per share.

A loss of $14,200 was closed to the retained earnings at the end of the year. Cash dividends of $15,490 were paid in December.
Instructions
1. Prepare a statement of cash flows using the indirect method of presenting cash flows from operating activities. Use of the spreadsheet is optional.
2. How does Morin's cash flow compare to its net loss? Summarize the changes that caused the difference.

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Dec. 31, 2014 Dec. 31, 2015 Assets $ 512,000 $ 538,000 Cash... Accounts receivable (net) Inventories. 460,500 424,400 702.500 640.060 Prepaid expenses Buildings Accumulated depreciation-buildings. Equipment.... Accumulated depreciation-equipment Land.. 16,300 18,500 500.500 (212.000) 810,500 (225.000) 283,550 251,800 (78,500) 175,500 (86.100) 269.900 $2,657,350 $2,345,060 Liabilities and Shareholders' Equity Accounts payable (merchandise creditors).. Bonds payable... Common shares Retained earnings $ 544,870 520,000 165.000 400,150 1,400,040 602,000 1,370,350 $2,657,350 $2,345.060 Land Jan. 1 269,900 94,400 Apr. 20 175,500