Direct Method-Preparing a Statement of Cash Flows Lauder Corp. reported the following financial statements. Balance Sheet December 31 Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets Accounts payable Notes payable, long-term Bonds payable Common stock (no-par) 120,000 Retained earnings 40,500 Total liabilities and stockholders' equity $195,000 13 Prior Year Current Year Difference $36,000 $93,000 $57,000 28,500 22,500 (6,000) 46,500 88,500 42,000 30,000 6,000 (24,000) 72,000 108,000 36,000 (18,000) (36,000) (18,000) $195,000 $282,000 $87,000 Income Statement For Year Ended December 31 Current Year Revenues $228,000 123,000 18,000 21,000 15,000 $51,000 Costs of goods sold Depreciation Other expenses Loss on sale of land Net income 24,000 10,500 0 27,000 3,000 45,000 138,000 69,000 $282,000 3,000 (7,500) 45,000 18,000 28,500 $87,000

Direct Method-Preparing a Statement of Cash Flows Lauder Corp. reported the following financial statements. Prepare the statement of cash flows using the direct method to present cash flows from operating activities for the current year ended December 31 - Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows