Comprehensive The following are Farell Corporation's balance sheets of as December 31, 2013, and 2012, and the statement of income and retained earnings for the year ended December 31, 2013:

Additional information:
a. On January 2 2013, Farrell sold equipment costing $45,000, with a book value of $24,000, for $19,000 cash.
b. On April 2, 2013, Farrell issued 1,000 shares of common stock for 523,000 cash.
c. On May 14, 2013, Farrell sold all of its treasury stock for 53,000 cash.
d. On June 1, 2013, Farrell paid 550,000 to retire bonds with a face value (and book value) of 550,000.
e. On July 2, 2013, Farrell purchased equipment for $63,000 cash.
f. On December 31, 2013, land with a fair market value of $150,000 was purchased through the issuance of a long-term note in the amount of 5150,000. The note bears interest at the rate of 15% and is due on December 31, 2015.
g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting.
Required:
1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the yew ended December 31, 2013, based on the preceding information.
2 Prepare the statement of cash flows.

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er S 225,000 180,000 S 45,000 Accounts receivable, net Investment in Hall Inc. at equity Plant and equipment Less: Accumulated depreciation Liabilities and Shareholders' Equity Accounts payable and accrued ex Note payable, long-tem Bonds payable Deferred taxes payable Common stock, $10 par Additional paid-in capital penses earnings Treasury stock, at cost Total Liabilities and Shareholders' Equity Statement of Income and Retained Earnings For the Year Ended December 31, 2013 Net sales Operating expenses: $1.950,000 Cost of sales Selling and administrative expenses Depreciation $1,150,000 1,708,000 42,000 income Other (income) expense: Interest expense Equity in net income of Hall, Inc Loss on sale of equipment Amortization of patent S 15,000 (13,000) 5,000 4,000 3 11,000 231,000 Income before income taxes Income taxes: 11,000 Provision for income taxes Retained eamings, January 1, 2013 Cash dividends, paid August 13, 2013 141,000 334,000 S 475,000 43,000 432,000 Retained eamings, December 31, 2013