Cash Flow Statements?

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Financial statements for Kiner Company are given below:

Kiner Company
Balance Sheet
January 1, 2013
Assets Equities
Cash $ 320,000 Accounts payable $ 152,000
Accounts receivable 288,000
Buildings and equipment 1,200,000
Accumulated depreciation—
buildings and equipment
(400,000 ) Common stock 920,000
Patents 144,000 Retained earnings 480,000
$1,552,000 $1,552,000

Kiner Company
Statement of Cash Flows
For the Year Ended December 31, 2013
Increase (Decrease) in Cash
.
Cash flows from operating activities
Net income $400,000
Adjustments to reconcile net income to net cash
provided by operating activities:

Increase in accounts receivable $(128,000 )
Increase in accounts payable 64,000
Depreciation—buildings and equipment 120,000
Gain on sale of equipment (48,000 )
Amortization of patents 16,000 24,000
Net cash provided by operating activities 424,000
.
Cash flows from investing activities
Sale of equipment 96,000
Purchase of land (200,000 )
Purchase of buildings and equipment (384,000 )
Net cash used by investing activities (488,000)
.
Cash flows from financing activities
Payment of cash dividend (120,000 )
Sale of common stock 320,000
Net cash provided by financing activities 200,000
Net increase in cash 136,000
Cash, January 1, 2013 320,000
Cash, December 31, 2013 $456,000


Total assets on the balance sheet at December 31, 2013 are $2,216,000. Accumulated deprecia-tion on the equipment sold was $112,000.

When the equipment was sold, the Buildings and Equipment account received a credit of



$208,000.


$160,000.


$112,000.


$96,000.