22 Feb Preston Company, Inc., has the following comparati
Preston Company, Inc., has the following comparative balance sheet as of March 31, 2014. Selected transaction data for the year ended March 31, 2014, include the following: a. Net income, $ 76,400 b. Paid long- term note payable with cash, $ 60,000 c. Cash payments to employees, $ 42,700 d. Loss on sale of land, $ 9,500 e. Acquired equipment by issuing long- term note payable, $ 15,200 f. Cash payments to suppliers, $ 147,400 g. Cash paid for interest, $ 3,000 h. Depreciation expense on equipment, $ 13,700 i. Paid short- term note payable by issuing common stock, $ 5,000 j. Paid cash dividends, $ 45,200 k. Received cash for issuance of common stock, $ 3,200 l. Cash received from customers, $ 297,000 m. Cash paid for income taxes, $ 12,100 n. Sold land for cash, $ 53,000 o. Interest received (in cash), $ 1,200 p. Purchased long- term investment for cash, $ 3,000 Requirements 1. Prepare the statement of cash flows for Preston Company, Inc., for the year ended March 31, 2014, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short- term notes payable result from operating transactions. 2. Also prepare a supplementary schedule of cash flows from operations using the directmethod.