Cape Town Manufacturing had the following income statement and balance sheet items (in millions of rands, the South African currency):

Income Statement

For the Year Ended December 31, 20X1

Sales ................. R925

Cost of goods sold ............ (545)

Gross margin .............. 380

Operating expenses .......... (220)

Depreciation .............. (60)

Interest ................ (15)

Income before taxes ........... 85

Income taxes .............. (25)

Net income ............. 60

Cash dividends declared and paid .... (33)

Total increase in retained earnings ..... R 27

During 20X1, Cape Town purchased fixed assets for R315 million cash and sold fixed assets for their book value of R100 million. Operating expenses, interest, and taxes were paid in cash. No long-term debt was retired.
Prepare a statement of cash flows for 20X1. Use the direct method for reporting cash flows from operating activities. Omit supporting schedules.

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Balance Sheets December 31 20X1 Increase 20X0 (Decrease) Assets Cash Accounts receivabie Inventories Total current assets Fixed assets, gross Accumulated depreciation Fixed assets, net Total assets R 37 230 450 R 60 150 350 560 715 (550) R (23) 80 100 157 175 (20) 155 R312 890 (570) 320 165 R1.037 R725 Liabilities and stockholders' equity Trade accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity R 515 250 272 R1,037 R300 180 245 R725 R215 70 27 R312