(Solved): Preparing the Statement of Cash Flows-Indirect Method The comparative balance sheet of House Const ...

Preparing the Statement of Cash Flows-Indirect Method The comparative balance sheet of House Construction Inc. for December 31, \( 20 \mathrm{Y} 3 \) and \( 20 \mathrm{Y} 2 \), is shown as follows: Additional data obtained from an examination of the accounts in the ledger for \( 20 \mathrm{Y} 3 \) 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.