Please complete P23-6 (includes both indirect and direct Statement of Cash Flows) from the textbook.

Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.

P23-6 (SCFIndirect Method, and Net Cash Flow from Operating Activities, Direct Method) Comparative
balance sheet accounts of Marcus Inc. are presented below.
MARCUS INC.
COMPARATIVE BALANCE SHEET ACCOUNTS
AS OF DECEMBER 31, 2014 AND 2013
December 31,
Debit Accounts		2014	2013
Cash		$ 42,000	$ 33,750
Accounts Receivable		$ 70,500	$ 60,000
Inventory		$ 30,000	$ 24,000
Investments (available-for-sale)		$ 22,250	$ 38,500
Machinery		$ 30,000	$ 18,750
Buildings		$ 67,500	$ 56,250
Land		$ 7,500	$ 7,500
Total		$269,750	$238,750
Credit Accounts		2014	2013
Allowance for Doubtful Accounts		$ 2,250	$ 1,500
Accumulated DepreciationMachinery		$ 5,625	$ 2,250
Accumulated DepreciationBuildings		$ 13,500	$ 9,000
Accounts Payable 35,000 24,750		$ 35,000	$ 24,750
Accrued Payables 3,375 2,625		$ 3,375	$ 2,625
Long-Term Notes Payable 21,000 31,000		$ 21,000	$ 31,000
Common Stock, no-par 150,000 125,000		$ 150,000	$ 125,000
Retained Earnings 39,000 42,625		$ 39,000	$ 42,625
Total		$ 269,750	$ 238,750
Additional data (ignoring taxes):
1. Net income for the year was $42,500.
2. Cash dividends declared and paid during the year were $21,125.
3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized.
4. Investments that cost $25,000 were sold during the year for $28,750.
5. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200.
Marcuss 2014 income statement follows (ignoring taxes).
Sales revenue			$ 540,000
Less: Cost of goods sold			$ 380,000
Gross margin			$ 160,000
Less: Operating expenses ($8,625 depreciation and $5,400)
bad debts)			$ 120,450
Income from operations			$ 39,550
Other: Gain on sale of investments		3750
Loss on sale of machinery		-800	$ 2,950
Net income			$ 42,500
Instructions
(a) Compute net cash flow from operating activities using the direct method.
(b) Prepare a statement of cash flows using the indirect method.