PR 16-1A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Navaria Inc. for December 31, 2013 and 20Y2, is shown as follows: Dec 31, 2013 Dec. 31, 2012 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net) 450,000 400,000 Inventories 770,000 750,000 0 Investments 100,000 Land 500,000 0 Equipment... 1,400,000 1,200,000 Accumulated depreciation-equipment (600,000) (500,000) $2,675,000 Total assets. $2,100,000 Liabilities and Stockholders' Equity Accounts payable ... $ 340,000 $ 300,000 45,000 50,000 Accrued expenses payable. Dividends payable..... 30,000 25,000 Common stock, $4 par. 700,000 600,000 Paid-in capital: Excess of issue price over 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