The comparative balance sheet of Rowe Products 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 $211,200 cash.
d. The common stock was issued for cash.
e. There was a $24,000 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, 2013 Dec. 31, 2012 Assets 680,160 1,213,200 0 624,000 1,056,000 815,280 656,880 1,179,360 288,000 Inventories Investments . 816,000 (240,480) $3,515,040 $4,052,160 Liabilities and Stockholders'Equity 898,080 84,960 7,680 38,400 230,400 2,255,520 3,515,040 Accrued expenses payable (operating expenses).. . . 76,080 10,560 177,600 369,600 2492,160 $4,052,160 $7,176,000 2942,400 $4,233,600 Operating expenses: 3,772,800 S 460,800 Other expense: Loss on sale of investments . 76,800) 384,000 123,360 260,640 Income tax expense