Refer to the information in Problem 17-3B. 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 are receipts from customers.
c. All purchases of merchandise are on credit.
d. All debits to accounts payable result from payments for merchandise.
e. Other operating expenses are cash expenses.
f. Income taxes are cashexpenses.

Burrow Mining Inc. Comparative Balance Sheet Information December 31 Burrow Mining Inc. Income Statement Year Ended December 31, 2014 Net 2014 Sales Change S 28,000 $ 14,560 $ 13,440 2013 $504,000 336,000 S168,000 Cash. Cost of goods sold. Gross profit. Operating expenses. Depreciation expense. Loss on sale of equipment. Cash equivalents. 10,080 5,600 4,480 Accounts receivable 51,520 21,840 29,680 $77,920 66,640 48,720 10,080 44,800 Inventory. 17,920 24,080 Long-term investment . -0- (10,080) 2,240 10,000 Land 44,800 -0- Income taxes... Gain on sale of long-term Building and equipment. 259,280 Accumulated depreciation. Accounts payable.. Dividends payable. Bonds payable. 266,000 (6,720). 12,320 (9,680) (6,720) 107,520 $ 60,480 investment. 56,560 21,600 68,880 11,920 Net income.. 400 800 (400) 14,000 14,000 -0- Preferred shares... 47,600 47,600 -0- Common shares. 236,880 236,880 48,160 -0- Retained earnings. 80,640 32,480