Statement of cash flows-indirect method PR 16-1A ow from ivities, The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012, is shown as follows: Dec. 31, 2012 Dec. 31, 2013 Assets $219,720 $234,660 85,440 Cash 78,360 Accounts receivable (net) 231,420 240,660 Inventories ........ 90,000 Investments Land ... Equipment... Accumulated depreciation-equipment . 123,000 264,420 207,420 ...... (62,400) S885,780 (55,500) $771,420 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors).... Accrued expenses payable (operating expenses) Dividends payable.. Common stock, $1 par.... Paid-in capital in excess of par-common stock Retained earnings... $159,180 $151,860 19,740 15,840 ...... ..... 7,200 9,000 ...... 36,000 48,000 105,000 451,620 $771,420 180,000 473,760 $885,780 The following additional information was taken from the records: a. The investments were sold for $105,000 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 $58,140 credit to Retained Earnings for net income. f. There was a $36,000 debit to Retained Earnings for cash dividends declared. Instructions Prenare a statement of cash flows using the indirect method of presenting cash flows FLACK INC. Statement of Cash Flows For the Year Ended December 31, 2013 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on inventory write down and fixed assets Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow provided by financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year