Refer to the information in Problem 17-3A. Prepare a statement of cash flows for 2014 using the direct method to report cash inflows and outflows from operating activities.

Other information:

a. All sales are credit sales.
b. All credits to accounts receivable in the period are receipts from customers.
c. All purchases of merchandise are on credit.
d. All debits to accounts payable in the period result from payments for merchandise.
e. Other operating expenses are cash expenses.
f. Income taxes are cashexpenses.

Uni-Select Inc. Uni-Select Inc. Balance Sheet Information Income Statement December 31 For Year Ended December 31, 2014 Net Change 2014 2013 Sales $864,000 S 48,000 $ 24,960 $ 23,040 17,280 88,320 Cash Cost of goods sold: Gross profit. Operating expenses .. Depreciation expense. Loss on sale of equipment. Cash equivalents. 576,000 $288,000 9,600 37,440 83,520 17,280 7,680 Accounts receivable 50,880 $132,720 Inventory . Long-term investment. 114,240 30,720 41,280 -0- (17,280) 3,840 Land 76,800 76,800 456,000 -0- Income taxes... 18,000 Gain on sale of long-term investment.. Building and equipment. 444,480 Accumulated depreciation.. 118,080 Accounts payable. Dividends payable. Bonds payable.. (11,520) 21,120 (17,880) (11,520) 184,320 $103,680 96,960 Net income.. 19,920 1,200 37,800 600 600 24,000 -0- 24,000 Preferred shares .. 81,600 -0- 81,600 406,080 138,240 Common shares. 406,080 82,560 -0- Retained earnings.. 55,680