To prepare the statement of cash flows, accountants for Four Star Electric Company have summarized 2014 activity in two accounts:

Four Star Electric€™s 2014 income statement and balance sheet data follow:

Four Star Electric Company
Selected Balance Sheet Data
December 31, 2014

Requirements
1. Prepare the statement of cash flows of Four Star Electric Company for the year ended December 31, 2014, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.
2. Use Four Star Electric€™s 2014 income statement and balance sheet to prepare a supplementary schedule of cash flows from operating activities by using the indirectmethod.

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Cash Beginning bal Sale of long-term investment Collections from customers Issuance of common stock Receipts of dividends 45,400 Payments on accounts payable 32,400 Payments of dividends 401,000 27,800 664,500 Payments of salaries and wages 143,900 27,000 31,900 Payments of operating expenses 34,300 Payment of long-term note payable 35,000 26,300 28,600 47,900 Payments of interest 16,900 Purchase of equipment Purchase of treasury stock Payment of income tax Ending Bal 51,300 Common Stock Beginning bal Issuance for cash Issuance to acquirel Issuance to retire note Ending bal 56,300 47,900 56,000 25,000 185,200 and A1 Four Star Electric Company Income Statement Year Ended December 31,2014 Revenues Sales revenue Dividend revenue 635,900 16,900 652,800 Total revenue Expenses and losses: Cost of goods sold Salary and wage expense Depreciation expense 346,500 151,500 20,600 23,500 28,700 25,200 6,500 Other operating expense 11 Interest expense 12 Income tax expense 13Loss on sale of investments Total expenses and losses 15 Net income Increase (Decrease) $ 5,900 Current assets: Cash and cash equivalents Accounts receivable (27,500) Inventories 61,600 400 38,900 11,300 56,000 7 Prepaid expenses 8 Long-term investments 9 Equipment, net Land 11 Current liabilities: 12 Accounts payable 8,200 1700 Z600 (10,400) (3,400) ー Interest payable 5 Other accrued liabilities Long-term note payable Salary payable Income tax payable (60,000) 18 Common stock 128,900 22,500 (26,300) Retained earnings 20 Treasury stock