EBook Company's Most Recent Balance Sheet,income Statement,and Other Important Information $\bullet$

eBook Company's most recent balance sheet,income statement,and other important information for 2013 are presented below.


Additional data for 2013
$\bullet$ Sold equipment with a book value of $38,000 (= $198,000 cost - $160,000 accumulated depreciation)for $78,000 cash.
$\bullet$ Purchased equipment for $278,000 cash.
$\bullet$ Sold long-term investments for $74,000 cash.These investments had an original cost of $80,000.
$\bullet$ Purchased long-term investments for $10,000 cash.
$\bullet$ Issued bonds for $186,000 cash.
$\bullet$ Issued common stock for $22,000 cash.
$\bullet$ Declared and paid $52,000 in cash dividends.
Prepare a statement of cash flows for the year ended December 31,2013,using the indirect method.
The owner of eBook Company wants to know why cash decreased from $720,000 to $590,000 given the company's net income of $74,000.Use the information in the statement of cash flows to briefly explain why cash decreased.