To prepare the cash flow statement, accountants for Nottingham Sales Ltd. have summarized 2014 activity in two T-accounts as follows:

Nottingham Sales Ltd.'s 2014 income statement and selected balance sheet data follow:

NOTTINGHAM SALES LTD.
Balance Sheet Data
For the Year Ended December 31, 2014
Increase (Decrease)
Current assets
Cash and cash equivalents $...................................................................?
Accounts receivable......................................................10,000
Inventories..................................................................5,700
Prepaid expenses.........................................................(1,900)
Investments...........................................................$ (27,700)
Plant and equipment, net................................................69,000
Land........................................................................75,000
Current liabilities
Accounts payable........................................................$ 7,700
Interest payable............................................................2,300
Salaries payable............................................................(700)
Other accrued liabilities.................................................(3,300)
Income tax payable........................................................3,200
Long-term debt.......................................................(100,000)
Common shares.........................................................146,500
Retained earnings.........................................................62,500
Required
1. Prepare Nottingham Sales Ltd.'s cash flow statement for the year ended December 31, 2014, using the direct method to report operating activities. Also prepare a note to the financial statements summarizing the noncash investing and financing activities.
2. Prepare a schedule showing cash flows from operating activities using the indirect method. All activity in the current accounts results from operations.

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Cash 87,100 Payments of operating Beginning balance Sale of common shares Receipts of dividends Sale of investments Receipts of interest 46,100 78,900 expenses 900 Payment of long-term debt 28,400 Repurchase of common shares Payment of income tax Payments on accounts 22,200 307,000 6000 from customers Payments of dividends Payments of salaries and wages 16,000 67500 41,800 79,900 Payments of interest Purchase of equipment Ending balance 75,200 Common Shares Repurchase of common shares 3000Beginning balance Issuance for cash Issuance to acquire land Issuance to retire long-term debt Ending balance 103,500 80,800 64,500 31,600 250,000 NOTTINGHAM SALES LTD Income Statement For the Year Ended December 31, 2014 Revenues and gains: Sales revenue Interest revenue Dividend revenue Gain on sale of investments $317,000 22,200 17,900 700 357,800 Total revenues and gains Expenses: Cost of goods sold Salaries and wages expense Amortization expense Other operating expenses Interest expense Income tax expense $103,600 66,800 10,900 44,700 44,100 9,200 Total expenses 279,300 $78,500 Net income