PR 14-2A Statement of cash flows-indirect method The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 an 2015, is as follows: Dec. 31, 2015 Dec. 31, 2016 Assets Cash Accounts receivable (net) Merchandise inventory s 146,600 $ 179,800 321,600 242,000 299,200 9,600 224,600 537,000 (132,200) $1,190,400$1,135400 13,400 655,000 (170,800) Liabilities and Stockholders' Equity s 250,200 0 237,600 74,000 336,000 24,000 Paid-in capital: Excess of issue price over par-common stock.. . .. 470,000 396,200 320,000 217,800 $1,190400 $1,135,400 683 Statement of Cash Flows Chapter 14 Additional data obtained from the income statement an accounts in the ledger for 2016 are as follows: a. Net income, $332,000 b. Depreciation reported on the income statement, $83,400 c. Equipment was purchased at a cost of $162, 800 and fully depreciated equipment cost- ing $44,800 was discarded, with no salvage realized d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $153,600 Instructions Prepare a statement of cash flows, using the indirect method of presenting from operating activities. cash flows