The comparative balance sheet of Suffridge Inc. for December 31, 20Y4 and 20Y3, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y4 are as follows:

a. Equipment and land were acquired for cash.

b. There were no disposals of equipment during the year.

c. The investments were sold for $702,000 cash.

d. The common stock was issued for cash.

e. There was a $630,000 debit to Retained Earnings for cash dividends declared.

Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

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Dec. 31, 20Y4 Dec. 31, 20 Assets $ 790,090 S B15600 1,091,700 ........... Cash. 1,185,100 Accounts recelivable (net). 1,664,800 Inventories.. 1,628,20) Investments.. 515,800 Land. 1,146,100 Equipment. Accumulated depreciation-equipment. 1,461,300 (574.800) $5,672,590 1,174,800 (439,8O0 $4,766,300 ..... Total assets. Liabilities and Stockholders' Equity $1,289,400 $1.154.000 Accounts payable.. Accrued expenses payable. Dividends payable. Common stock, S5 par.. Paid-in capital in excess of par. ........... 80,900 94600 ****** 120,300 108.900 155,200 35.800 537,300 1,134,200 2,892,590 Retained earnings. Total liabilities and stockholders'equity. $5,672,590 2,855,700 $4,786,300 The income statement for the year ended December 31, 20Y4, is as follows: $5,386,900 2.808,100 $2,578800 Sales... Cost of merchandise sold.. Gross profit. Operating expenses: Depreciation expense.. Other operating expenses... Total operating expenses... Income from operations... Other income: $ 135,000 1,605,610 1740610 $ 838.190 Gain on sale of investments.. Income before income tax.. 185200 $1,024,390 357,100 $ 667,290 .......... Income tax expense.. ......... Net income..