Answer and Explanation:
The preparation is presented below:      
                                                  Shamrock Company 
                                             Statement of Cash Flows
                                  For the Year Ended December 31, 2014
                                                   (Direct Method)
Cash flows from operating activities
Cash receipts:  
Cash received from customers	$1,153,660  
Dividends received                 $2,500	
Total cash receipts                         $1,156,160
Cash payments:  
Cash paid to suppliers                  $762,690  
Cash paid for operating expenses	$225,230  
Taxes paid                                     $39,920  
Interest paid                                       $61,776	
Total cash payments                           -$1,089,616
Net cash provided by operating activities  $66,544
Cash flows from investing activities  
Sale of short-term investments	$14,080  
Sale of land	$55,590  
Purchase of equipment	-$124,570  
Net cash used by investing activities  -$54,900
Cash flows from financing activities  
Proceeds from issuance of common stock	$29,526  
Principal payment on long-term debt	-$9,580  
Dividends paid	-$23,890  
Net cash used by financing activities  -$3,944
Net increase in cash  $7,700
Cash, January 1, 2014  $3,060
Cash, December 31, 2014  $10,760
Working notes 
Sales Revenue	$1,160,450  
– Increase in Accounts Receivable	$6,790  
Cash received from customers	$1,153,660  
Cost of Goods Sold	$748,980  
+ Increase in Inventory	$5,020  
+ Decrease in Accounts Payable	$8,690  
Cash paid to suppliers	$762,690  
Operating Expenses	$275,640  
– Depreciation/Amortization Expense	-$39,330  
– Decrease in Prepaid Rent	-$110,80  
+ Increase in Prepaid Insurance	$1,640  
+ Increase in Office Supplies	$520  
– Increase in Wages Payable	-$2,160  
Cash paid for Operating Expenses	$225,230  
Income tax expense	$40,350  
Less:Increase in income taxes payable	-$430  
Taxes paid	$39,920  
Interest Expense	$52,270  
+ Decrease in Bond Premium	$9,506  
Interest paid	$61,776  
Reconciliation of Net Income to Net Cash Provided by Operating Activities:  
Net income  $58,420
Adjustments made to reconcile net income to net cash provided by operating activities:  
Add: Depreciation expense $39,330  
Add: Decrease in prepaid rent	$110,80  
Add: Increase in income taxes payable	$430  
Add: Increase in wages payable	$2,160  
Less: Increase in accounts receivable	-$6,790  
Less: Increase in inventory	-$5,020  
Less: Increase in prepaid insurance	-$1,640  
Less: Increase in office supplies	-$520  
Less: Decrease in accounts payable	-$8,690  
Less: Gain on sale of land	-$8,320  
Less: Gain on sale of short-term investments	-$4,390  
Less: Amortization of bond premium	-$9,506  
Total adjustments  $8,124
Net cash provided by operating activities  $66,544