DelTek, Inc.€™s income statement and comparative balance sheets appear as follows:

Additional information related to business activities during 2014:
1. All accounts payable pertain to inventory purchases, and accrued liabilities pertain to other operating expenses.
2. The original cost of the equipment sold was $19,600. New equipment was purchased and 6,000 common shares at $10/share were issued as a partial payment.
3. DelTek purchased some land and borrowed $20,000 from a mortgage company as a partial payment.
4. DelTek declared a dividend on December 24 to be paid on January 24, 2015.
Requirements
1. Identify source and use of cash for each account in the balance sheet.
2. Calculate the cash receipt from the sale of equipment and the cost of the new equipment, using T-accounts to show your calculations.
3. Calculate the amount of cash dividend declared and cash dividend paid, using T-accounts to show your calculations.
4. Prepare a cash flow statement, using the indirect method.
5. Prepare the cash flow from operating activities section by using the direct method.

DelTek, Inc Income Statement For the Year Ended December 31, 2014 Sales Revenue Cost of Goods Sold $212,000 84,800 127,200 Depreciation Expense- Patent Depreciation Expense Equipment Salaries Expense Other Operating Expenses Interest Expense Gain on Sale of Equipment Income Before Income Taxes Income lax Expense Net Income 1,200 12,600 52,500 37,500 9,000 2,600) 110,200 17,000 5,100 11,900 DelTek, Inc Balance Sheet As of December 31 SOURCE/ USE 2014 2013 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation Land Patents Total S 8,000 5,200 16,800 42,600 4,300 86,700 (41,000) (34,600) 83,000 35,000 6,000 $250,000 $162,000 12,500 36,700 2,500 143,500 4,800 Accounts Payable Accrued Liabilities Salaries Payable Dividends Payable Interest payable Income Tax Payable Mortgage Common Shares Retained Earnings Total 24,300 6,700 14,500 8,600 12,200 3,600 20,000 130,000 30,100 16,200 8,900 10,200 9,200 18,000 4,800 70,000 24,700 $250,000 $162,000