Question: The comparative balance sheet of Navaria Inc.
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: 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 $500,000 credit to Retained Earnings for net income. f. There was a $90,000 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.
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Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net). 450,000 400,000 Inventorles 770,000 750,000 Investments 100,000 Land .... 500,000 Equipment... Accumulated depreciation-equipment Total assets.. 1,400,000 1,200,000 (600,000) $2,675,000 (500,000) $2,100,000 Llablitles and Stockholders' Equlty $ 340,000 $ 300,000 Accounts payable Accrued expenses payable.. Dividends payable... Common stock, $4 par.. Paid-in capital: Excess of issue price over par-common stock... Retained earnings.... Total liabilitles and stockholders' equity. 45,000 50,000 30,000 25,000 700,000 600,000 200,000 175,000 1,360,000 $2,675,000 950,000 ..... $2,100,000
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