The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2014 and 2013, is:

The income statement for the year ended December 31, 2014, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 2014 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 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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Dec. 31, 2014 Dec. 31, 2013 Assets $70,720 207,230 298,520 0 295,800 438,600 (99,110) 1,211,760 Cash S 47,940 188,190 289,850 102,000 0 358,020 (84,320) S 901,680 Land.. .. Liabilities and Stockholders'Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) 30,600 25,500 202,000 354,000 393,960 $1,211,760 194,140 26,860 20,400 102,000 204,000 354,280 S 901,680 . . . Paid-in capital: Excess of issue price over par Retained earnings... Sales Cost of m $2,023,898 1245,476 $ 778,422 Operating expenses: 14,790 517,299 Depreciation expense . . . . 532,089 246,333 Operating income Other expenses: Loss on sale of investments Income before income tax . Income tax expense . 10200) s 236,133 94,453 141,680 .