The comparative balance sheet of Flack Inc. for December 31, 2014 and 2013, is as follows: Solution Cash flow from operating activities direct method Sales 1,576,840 Plus Decrease in account receivable 7,570 Add back depreciation expenses 7,200 Cash collections 1,591,610 Minus Cost of goods sold 969,760 Plus Increase in inventories 9,930 Minus Increase in accounts payable -8,150 Cash payment for purchases 971,540 Other expenses Operating expenses 514,050 Plus Accrued expense payable 4,300 Cash payment for operations 518,350 Income tax expense 40,770 Minus Increase in dividends payable -1,900 Cash payment for income tax and dividends 38,870 Net cash flow from operating activities 62,850 .

1. The comparative balance sheet of Flack Inc. for December 31, 2014 and 2013, is as follows:
Dec. 31, 2014
Dec. 31,
2013
Assets
Cash $ 249,060 $ 235,750
Accounts receivable (net) 91,630 84,060
Inventories 258,240 248,310
Investments 0 96,620
Land 132,370 0
Equipment 282,230 222,230
Accumulated depreciation-equipment (67,100) (59,900)
$946,430 $827,070
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 171,080 $ 162,930
Accrued expenses payable (operating expenses) 17,200 21,500
Dividends payable 9,300 7,400
Common stock, $1 par 50,500 38,870
Paid-in capital in excess of par
Solution
Cash flow from operating activities direct method Sales 1,576,840 Plus Decrease in account
receivable 7,570 Add back depreciation expenses 7,200 Cash collections 1,591,610 Minus Cost
of goods sold 969,760 Plus Increase in inventories 9,930 Minus Increase in accounts payable -
8,150 Cash payment for purchases 971,540 Other expenses Operating expenses 514,050 Plus
Accrued expense payable 4,300 Cash payment for operations 518,350 Income tax expense
40,770 Minus Increase in dividends payable -1,900 Cash payment for income tax and dividends
38,870 Net cash flow from operating activities 62,850