Reference no: EM13516718

The comparative balance sheet of Gold Medal Sporting Goods Inc. for December 31, 2008 and 2007, is shown as follows:

	Dec. 31, 2008	Dec. 31, 2007
Assets
Cash	$ 391,100	$ 366,200
Accounts receivable (net)	142,400	130,600
Inventories	401,100	385,700
Investments	0	150,000
Land	205,000	0
Equipment	440,700	345,700
Accumulated depreciation-equipment	(104,000)	(92,500)
	$1,476,300	$1,285,700
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 267,800	$ 253,100
Accrued expenses (operating expenses)	26,400	32,900
Dividends payable	15,000	12,000
Common stock, $10 par	80,000	60,000
Paid-in capital in excess of par-common stock	300,000	175,000
Retained earnings	787,100	752,700
	$1,476,300	$1,285,700

The following additional information was taken from the records:

a. The investments were sold for $175,000 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 $94,400 credit to Retained Earnings for net income.

f. There was a $60,000 debit to Retained Earnings for cash dividends declared.

Instructions

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