The comparative balance sheet of Green Earth Lawn and Garden Inc. for December 31, 2008 and 2009, is as follows:

Dec. 31, 2009 Dec. 31, 2008

Assets

The income statement for the year ended December 31, 2009, is as follows:

The following additional information was taken from the records.
A. Equipment and land were acquired for cash
B. There were no disposals of equipment during the year
C. The investments were sold for 122,000 cash.
D. The common stock was issued for cash.
E. There was a 88,300 debit to Retained Earnings for cash dividends declared.

Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operatingactivities

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Cash Accounts receivable (net)... . Inventories Investments Land Equipment Accumulated depreciation S 137,900 $142,300 S117,900 190,500 S23.600 -32,000 16300 6400 206,800 290,500 284,100 90,000 200,000 255,000 205,000 (100,300 76,700 S989,900 $835,200 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 23500 2400 19,000 $107,900 S 224,900 S201,400 16,500 Dividends payable Common stock, S1 par Paid-in capital in excess of par ー, 21,000 10,000 200,000 8.000 100,000 490,300 S989.900 $835.200 stock Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other income: Gain on sale of investments Income before income tax Income tax expense Net income $940,000 489,300 $450,700 $23,600 278,900 302,500 S148,200 32,000 $180,200 62,300 $117,900