The comparative balance sheet of Lankau Enterprises Inc. at December 31, 2014 and 2013 is as follows:

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
a. Net income, $198,000.
b. Depreciation reported on the income statement, $125,100.
c. Equipment was purchased at a cost of $244,200, and fully depreciated equipment costing $67,200 was discarded, with no salvage realized.
d. The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
e. 15,000 shares of common stock were issued at $40 for cash.
f. Cash dividends declared and paid, $230,400.

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

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Dec. 31, 2014 Dec. 31, 2013 Assets 363,000 448,800 14,400 805,500 (198,300) 1,785,600 $1,703,100 336,900 482,400 20,100 982,500 256,200) Merchandise inventory Equipment. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) . . . . _ . ..$ 375,300 356,400 504,000 36,000 480,000 326,700 1,703,100 411,000 705,000 294,300 $1,785,600 Paid-in capital: Excess of issue price over par-common stock....