Golf Universe is a regional and online golf equipment retailer. The company reported the following for the current year:

? Purchased a long-term investment for cash, $15,000

? Paid cash dividend, $12,000

? Sold equipment for $6,000 cash (cost, $21,000; accumulated depreciation, $15,000)

? Issued no-par common shares, 500 shares at $12 cash per share

? Net income was $20,200

? Depreciation expense was $3,000?

Its comparative balance sheet is presented below.

Required:

1. Using what you learned in Supplement 12B, complete a T-account worksheet to be used to prepare the statement of cash flows for the current year.

2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in proper format.

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Ending Balances Beginning Balances Balance Sheet Items $ 20,500 $ 19,200 Cash Accounts Receivable 22,000 22,000 Merchandise Inventory 68,000 75,000 Investments 15,000 113,500 Equipment Accumulated Depreciation 114,500 32,000 20,000 $193,000 $204,700 Total Accounts Payable Wages Payable Income Taxes Payable 17,000 14,000 2,500 3,000 1,500 4,500 Notes Payable Contributed Capital Retained Earnings 54,000 74,000 100,000 106,000 16,500 24,700 $193,000 $204,700 Total