The following financial statements were drawn from the records of Boston Materials, Inc.:

Income Statement
For the Year Ended December 31, 2014
Sales revenue ....... $450,000
Cost of goods sold ...... (212,000)
Gross margin ........ 238,000
Operating expenses
Salary expense ........ (96,000)
Depreciation expense .... (18,500)
Utilities expense ....... (7,500)
Operating income ...... 116,000
Nonoperating items
Interest expense ....... (3,500)
Gain on sale of equipment ... 1,500
Net income ........ $114,000

Additional Information
1. Sold equipment costing $48,000 with accumulated depreciation of $26,000 for $23,500 cash.
2. Paid a $50,000 cash dividend to owners.

Required
Analyze the data and prepare a statement of cash flows using the directmethod.

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Balance Sheets As of December 31 2014 2013 Assets Cash Accounts receivable Inventory Notes receivable (long-term) Equipment Accumulated depreciation-equipment Land Total assets 99,700 S 25,400 60,000 75,000 24,000 152,000 (75,000 45,000 S354,200S306,400 72,000 86,000 104,000 (67,500) 60,000 Liabilities and equity Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings S 35,300 18,200 1,400 600 S 36,200 15,500 2,800 1,200 36,000 100,000 114,700 S306,400 120,000 178,700 S354,200 Total liabilities and equity