The comparative balance sheet of Green Earth Lawn and Garden Inc.

, for December
31,2008 and 2009 as follows
Dec 31,2009

Dec 31,2008

Cash

$137,900

$142,300

Accounts receivable (net)

206,800

190,500

Inventories

290,500

284,100

Investments

90,000

Land

200,000

Equipment

255,000

205,000

Assets

Accumulated depreciation

(103,000)
$989,000

(76,700)
$835,200

Liabilities and Stockholder Equity

Accounts payable(merchandise creditors)

$224,900

Accrues expenses(operating expenses)

16,500
Dividends payable

$201,400

14,100
21,000

Common stock $1 par

19,000

10,000

8,000

Paid-in capital in excess of par-common stock200,000

Retired earnings

100,000

519,900

490,300

$989,900

$835,200

The income statement for the year ended December 31,2009, is as follows.
Sales

$940,000

Cost of merchandise

489,300

Gross Profit

$450,700

Operating Expenses:
Depreciation expenses

$23,600

Other operating expenses

Total Operating expenses
Operating income

278,900
302,500
$148,200

Other income:
Gain on sale of investments

32,000

Income before income tax

$180,200

Income tax expense

62,300

Net income

$117,900

The following additional information was taken from the records.

a.
b.
c.
d.
e.

Equipment and land were acquired for cash.

There were no disposals of equipment during the year
The investments were sold for $122,000 cash
The common stock was issued for cash
There were $88,300 debit to Retained Earnings for cash dividends declared

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