An income statement and comparative balance sheets for Dexter Company follow. Additional Information: 1. Land was acquired during the year for $70,000. 2. An unimproved parcel of land was sold during...

An income statement and comparative balance sheets for Dexter Company follow.

Additional Information:

1. Land was acquired during the year for $70,000.

2. An unimproved parcel of land was sold during the year for $27,500. Its original cost to Dexter was $30,000.

3. A specialized piece of equipment was acquired in exchange for capital stock in the company. The value of the capital stock was $60,000.

4. In addition to the capital stock issued in (3), stock was sold for $40,000.

5. Dividends of $600 were paid.

Required

Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section of the statement. Include supplemental schedules to report any noncash investing and financing activities and to reconcile net income to net cash provided by operating activities.