PR 13-1A Statement of Cash Flows-Indirect Method Obj. 2, 3, 4, 5 The comparative balance sheet of Livers Inc. for December 31, 2013 and 2012, is shown as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash..... Accounts receivable (net) $ 155,000 450,000 $ 150,000 400,000 Inventories 770,000 750,000 Investments 0 100,000 Land...... Equipment.. 500,000 0 1,400,000 1,200,000 Accumulated depreciation-equipment. Total assets. (600,000) $2,675,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) ..... $ 340,000 (500,000) $2,100,000 $ 300,000 Accrued expenses payable (operating expenses) 45,000 50,000 Dividends payable...... 30,000 25,000 Common stock, $4 par... 700,000 600,000 Paid-in capital in excess of par-common stock 200,000 175,000 Retained earnings.......... 1,360,000 950,000 Total liabilities and stockholders' equity.. $2,675,000 $2,100,000 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $500,000 credit to Retained Earnings for net income. f. There was a $90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Answer Check Figure: Net cash flow from operating activities, $490,000