Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2011 and 2010 are provided below.
Balance Sheets

INCOME STATEMENT
For the Year Ended December 31, 2011
Sates ............................................................ $4,200,000
Cost of sales ..................................................... 3,576.000
Gross profit ........................................................ 624,000
Selling Expenses .............................. $300,000 ..................
Administrative expenses ..................... 96,000 ........... 396.000
Income from operations .......................................... 228,000
Interest expense .................................................... 36,000
Income before taxes ............................................. 192,000
Income taxes ...................................................... 48,000
Net Income .................................................... $ 144,000
The following additional data were provided:
Dividends for the year 2011 were $96,000.
During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
All depreciation expense is in the selling expense category.
The net cash provided by operating activities is $204,000
The net cash provided (used) by investing activities is $120,000.
Under the direct method, the cash received from customers is $4,128,000
Under the direct method, the total taxes paid is $68,000.
The net cash provided (used) by financing activities is $(216,000)
Prepare a Direct Method Cash Flow Statement in good accounting form.

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12/31/11 12/31/10 $204,000 $96,000 Cash Accounts receivable 180,000 108,000 Merchandise inventory 192,000 240,000 480,000 Property, plant, equipment 304,000 Less accumulated depreciation (160,000) 144,000 (152,000) 328,000 $720,000 S772,000 $88,000 $48,000 Accounts payable Income taxes payable 176,000 196,000 300,000 Bonds payable 180,000 Common stock 108,000 108,000 Retained earnings 168,000 120,000 $720,000 $772,000