Prepare a statement of cash flows, using the indirect method. The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: a. Net income, $524,580. b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680. c. Patent amortization reported on the income statement, $5,040. d. A building was constructed for $579,600. e. A mortgage note for $224,000 was issued for cash. f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable. g. Cash dividends declared, $131,040. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Dec. 31, 20Y4 Dec. 31, 20Y3 $ 443,240 360.920 Accounts receivable (net) 665.280 592.200 Inventories .. 387.850 1,022.560 Prepaid expenses . 31.640 25,200 Land . . 302.400 302,400 Buildings . .. . 1.713.600 1,134.000 Accumulated depreciation (466.200 (414.540) Machinery and equipment.. 781,200 781.200 Accumulated depreciation (214.200) (191.520) Patents Loc. 106.960 1 12.000 Total assets . . $4.251.800 $3,724.420 Liabilities and Accounts payable (merchan S 837.480 927.080 Dividends payable.. .. 32.760 25.200 Salaries payable . . .. .... 78.960 87,080 Mortgage note payable. due in 10 years. . 224.090 Bonds payable . . .... 390,000 Common stock. $5 par. 200,400 50.400 Paid-in capital: Excess of issue price 366.000 126.000 Retained earnings-.. 2,512.200 2.1 18.650 Total liabilities and stockholder $4,251.800 $3,724,420