The comparative balance sheet of Winner's Edge Sporting Goods, Inc., for December 31, 2007 and 2006, is at the top of the following page. The following additional information was taken from the records:

a. The investments were sold for $132,000 cash.

b. Equipment and land were acquired for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. There was a $180,600 credit to Retained Earnings for net income.

f. There was a $56,000 debit to Retained Earnings for cash dividends declared.

Instructions

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

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Dec. 31, 2007 Dec. 31, 2006 Assets $ 464,100 163,200 395,000 395,800 145,700 367,900 120,000 Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total 160,000 695,500 (194,000) $1,683,800 575,500 (168,000) 1,436,900 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of pa Retained earnings Total 228,700 16,500 14,000 75,000 265,000 1,084,600 $1,683,800 210,500 21,400 10,000 60,000 175,000 960,000 1,436,900 stock