Statement of cash flows-direct method applied to PR 13-1A Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions Dec. 31, 2043 Dec. 31,2072 Assets Cash $155,000.00 $150,000.00 Accounts receivable (net) 450,000.00 400,000.00 Inventories 770,000.00 750,000.00 100,000.00 Investments 0.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 9 Accumulated depreciation equipment (600,000.00) $2,675,000.00 1,200,000.00 (500,000.00) $2,100,000.00 10 Total assets Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 Accrued expenses payable (operating expenses) 50,000.00 45,000.00 30,000.00 14 Dividends payable 25,000.00 15 Common stock, $4 par 700,000.00 Paid-in capital in excess of par-common stock 200,000.00 600,000.00 175,000.00 950,000.00 $2,100,000.00 17 Retained earnings 1,360,000.00 $2,675,000.00 18 Total Liabilities and stockholders' equity The income statement for the year ended December 31, 20Y3, is as follows: Sales $3,000,000.00 (1,400,000.00) Cost of goods sold Gross profit $1,600,000.00 Operating expenses: Depreciation expense $100,000.00 950,000.00 Other operating expenses Total operating expenses (1,050,000.00) $550,000.00 Operating income Other income: 10 Gain on sale of investments 75,000.00 11 Income before income tax $625,000.00 12 Income tax expense (125,000.00) $500,000.00 13 Net income 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 $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign. Statement of Cash Flows Shaded cells have feedback. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign. Question not attempted. Livers Inc. Score: 0/127 Statement of Cash Flows (Label) 1 Cash flows from (used for) operating activities: 8 Cash flows from (used for) investing activities: Statement of Cash Flows Shaded cells have feedback. X Cash flows from (used for) financing activities: Cash balance, January 1, 20Y3 20 Cash balance, December 31, 20Y3