The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows:

The income statement for the year ended December 31, 2012, 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 $294,000 cash.
d. The common stock was issued for cash.
e. There was a $196,500 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, 2013 Dec. 31, 2012 Assets Cash 330,960 496,320 697,200 0 480,000 612,000 (240,750) 341,550 457,200 681,900 216,000 Inventories . Investments . Equipment.... _.. .. 492,000 (184,200) 2,004,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) . . . 540,000 33,900 50,400 108,000 364,500 1,278,930 $2,375,730 483,300 39,600 45,600 15,000 225,000 1,195,950 2,004,450 Common stock, $10 par 2,256,000 176,000 1,080,000 Sales Gross Operating expenses: 56,550 672,420 Depreciation expense .. 728,970 S 351,030 Other income: 78,000 S 429,030 149,550 S 279,480