Following are the data for Larson Co. for the year ending December 31 Year 2, and the preceding year ended December 31 Year 1 and the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that:

	Equipment costing $125,000 was purchased for cash.
	Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
	The stock was issued for cash.

The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

1		Year 2	Year 1
2	Assets
3	Cash	$100,000.00	$78,000.00
4	Accounts receivable (net)	78,000.00	85,000.00
5	Inventories	101,500.00	90,000.00
6	Equipment	410,000.00	370,000.00
7	Accumulated depreciation	(150,000.00)	(158,000.00)
8	Total Assets	$539,500.00	$465,000.00
9	Liabilities and stockholders equity
10	Accounts payable (merchandise creditors)	$58,500.00	$55,000.00
11	Cash dividends payable	5,000.00	4,000.00
12	Common stock, $10 par	200,000.00	170,000.00
13	Paid-in capital in excess of parcommon stock	62,000.00	60,000.00
14	Retained earnings	214,000.00	176,000.00
15	Total liabilities and stockholders equity	$539,500.00	$465,000.00

Required:

On the basis of the following data, prepare a statement of cash flows. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

Statement of Cash Flows:

Label : ___insert correct label_____

	Debit	Credit
Cash flows from operating actives
* Fill in account name and amount
Adjustment to reconcile net income to net cash flow from operating activities
* Fill in account name and amount
* Fill in account name and amount
Change in current operating assets and liabilities
* Fill in account name and amount
* Fill in account name and amount
* Fill in account name and amount
* Fill in account name and amount
Cash flows from investing activities
* Fill in account name and amount
* Fill in account name and amount
* Fill in account name and amount
Cash flows from financing activities
* Fill in account name and amount
* Fill in account name and amount
* Fill in account name and amount
* Fill in account name and amount
Cash at the beginning of the year
Cash at the end of the year

Labels and Account Descriptions.

Labels
For Year Ended December 31, Year 2
Amount Descriptions
Cash paid for dividends
Cash received from issuance of common stock
Cash paid for purchase of equipment
Cash received from sale of equipment
Change in cash
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Depreciation
Gain on sale of equipment
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Loss on sale of equipment
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities
Net income
Net loss