Taurasi Company, a merchandiser, recently completed its 2011 operations. For the year,
(1) All sales are credit sales,
(2) All credits to Accounts Receivable reflect cash receipts from customers,
(3) All purchases of inventory are on credit,
(4) All debits to Accounts Payable reflect cash payments for inventory,
(5) Other Expenses are cash expenses, and
(6) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company€™s balance sheets and income statement follow.

Additional Information on Year 2011 Transactions
a. Purchased equipment for $28,950 cash.
b. Issued 3,000 shares of common stock for $14 cash per share.
c. Declared and paid $66,000 of cash dividends.

Required
Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirectmethod.

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TAURASI COMPANY Comparative Balance Sheets December 31, 20II and 2010 2011 2010 ....53,925 31.800 19.425 175.350 105.450 49.300) Accounts receivable TAURASI COMPANY Income Statement For Year Ended December 31,201I 23.250 139,875 76,500 Merchandise inventory 609,750 Total assets.. 279,000 Liabilities and Equity 330,750 $305.850 $240.825 Cost of goods sold Gross profit Operating expenses Accounts payable .. 38.475 35,625 6.750 150,000 Income taxes payable.. Common stock, $2 par value Paid-in capital in excess 4,500 65,000 Depreciation expense. . 17,700 Other expenses... Income before taxes. Income taxes expense Net income.. 179,775 197,475 133,275 44,850 Retained earnings - 88,425 Total liabilities and equity... of par, common stock 15,000 $240,825