Following are the data for Larson Co. for the year ending December 31 Year 2, and the preceding year ended December 31 Year 1 and the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that:

	Equipment costing $125,000 was purchased for cash.
	Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
	The stock was issued for cash.

The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

1		Year 2	Year 1
2	Assets
3	Cash	$100,000.00	$78,000.00
4	Accounts receivable (net)	78,000.00	85,000.00
5	Inventories	101,500.00	90,000.00
6	Equipment	410,000.00	370,000.00
7	Accumulated depreciation	(150,000.00)	(158,000.00)
8	Total Assets	$539,500.00	$465,000.00
9	Liabilities and stockholders equity
10	Accounts payable (merchandise creditors)	$58,500.00	$55,000.00
11	Cash dividends payable	5,000.00	4,000.00
12	Common stock, $10 par	200,000.00	170,000.00
13	Paid-in capital in excess of parcommon stock	62,000.00	60,000.00
14	Retained earnings	214,000.00	176,000.00
15	Total liabilities and stockholders equity	$539,500.00	$465,000.00

Required:

On the basis of the following data, prepare a statement of cash flows. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. Statement of Cash Flows: Label : ___insert correct label_____ Debit Credit Cash flows from operating actives * Fill in account name and amount Adjustment to reconcile net income to net cash flow from operating activities * Fill in account name and amount * Fill in account name and amount Change in current operating assets and liabilities * Fill in account name and amount * Fill in account name and amount * Fill in account name and amount * Fill in account name and amount Cash flows from investing activities * Fill in account name and amount * Fill in account name and amount * Fill in account name and amount Cash flows from financing activities * Fill in account name and amount * Fill in account name and amount * Fill in account name and amount * Fill in account name and amount Cash at the beginning of the year Cash at the end of the year Labels and Account Descriptions. Labels For Year Ended December 31, Year 2 Amount Descriptions Cash paid for dividends Cash received from issuance of common stock Cash paid for purchase of equipment Cash received from sale of equipment Change in cash Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Depreciation Gain on sale of equipment Increase in accounts payable Increase in accounts receivable Increase in inventories Loss on sale of equipment Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss