Comparative balance sheet accounts of Marcus Inc. are presented below. MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2014 AND 2013 December 31 Debit Accounts 2014 2013 Cash $42,190 $34,210 Accounts Receivable 70,580 59,810 Inventory 29,510 24,250 Investments (available-for-sale) 22,520 38,440 Machinery 29,500 18,440 Buildings 67,860 55,890 Land 7,690 7,690 $269,850 $238,730 Credit Accounts Allowance for Doubtful Accounts $2,950 $1,200 Accumulated Depreciation—Machinery 6,460 1,960 Accumulated Depreciation—Buildings 14,040 8,420 Accounts Payable 35,100 24,630 Accrued Payables 3,024 2,854 Long-Term Notes Payable 20,990 31,500 Common Stock, no-par 149,600 125,300 Retained Earnings 37,686 42,866 $269,850 $238,730 Additional data (ignoring taxes): 1. Net income for the year was $40,170. 2. Cash dividends declared and paid during the year were $21,050. 3. A 20% stock dividend was declared during the year. $24,300 of retained earnings was capitalized. 4. Investments that cost $25,490 were sold during the year for $28,800. 5. Machinery that cost $3,390, on which $735 of depreciation had accumulated, was sold for $1,794. Marcus’s 2014 income statement follows (ignoring taxes). Sales revenue $537,611 Less: Cost of goods sold 379,650 Gross margin 157,961 Less: Operating expenses (includes $10,855 depreciation and $5,840 bad debts) 120,240 Income from operations 37,721 Other: Gain on sale of investments $3,310 Loss on sale of machinery (861 ) 2,449 Net income $40,170 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ALEXANDER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 (Indirect Method) $ Adjustments to reconcile net income to $ $ Click if you would like to Show Work for this question: Open Show Work