The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively. Its current accoun

The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively. Its current accounts on its comparative balance sheet showed the following:

December 31

20X4

20X5

Cash

$10,000

$12,000

Marketable Securities

25,000

27,000

Accounts Receivable

45,000

40,000

Inventory

15,000

17,000

Prepaid Expense

10,000

8,000

Accounts Payable

25,000

30,000

Accrued Payroll

8,000

10,000

Income Taxes Payable

10,000

8,000

Current Maturities of Long-Term Debt

15,000

18,000

Dividends Payable

5,000

8,000

In addition, sales of equipment, marketable securities, and investments during 20X5 were as follows:

1. Equipment that cost $20,000 with accumulated depreciation of $12,000 was sold for $5,000.

2. Investments that cost $20,000 were sold for $25,000.

3. Marketable securities that cost $10,000 were sold for $8,000. Required:

Required - Prepare a schedule of cash flows from operating activities for 20X4.