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Problem 13-B Spinach Company Statement of Cash Flows Notes: a) Investments that cost $7 were sold for $9. b) Equipment that cost $15 and had Accumulated Depreciation of $10 was sold for $4. c) The company paid a cash dividend. P 13 - B Carrot Company Statement of Cash Flows For the year ended December 31, Year 2 Cash flows from operating activities (Income Stmt, Current Assets, Current Liabilities) Cash collected from customers (1) Cash paid for merchandise (2) Cash paid for operating expenses (3) Cash paid for income taxes (4) Net cash flow from operating activities Cash flows from investing activities (Lona-Term Assets) Net cash flow from investing activities C.ash flows from financing activities (Long-Term Liabilities, Owners Equity) Net cash flow from financing activities Net increase (decrease) in cash P 13 - B (continued) Carrot Company Statement of Cash Flows For the year ended December 31, Year 2 Cash flows from operating activities (Income Stmt, Current Assets, Current Liabilities) Net income Adjustments to reconcile net income to net cash flow: Net cash flow from operating activities (Note: Same bottom line as Direct Method)