Andrews Inc., a greeting card company, had the following statements prepared as of December 31, 2010. Additional information:

1. Dividends in the amount of $6,000 were declared and paid during 2010.

2. Depreciation expense and amortization expense are included in operating expenses.

3. No unrealized gains or losses have occurred on the investments during the year.

4. Equipment that had a cost of $30,000 and was 70% depreciated was sold during 2010.

Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliationschedule.)

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ANDREWS INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2010 AND 2009 12/31/10 Cash Accounts receivable Short-term investments (Available-for-sale) Inventories Prepaid rent Printing equipment Accumulated depr.-equipment Copyrights Total assets Accounts payable Income taxes payable Wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Gain on sale of equipment $6,000 62,000 35,000 40,000 5,000 154,000 Income before tax Income tax expense Net income (35,000) 46,000 $313,000 ANDREWS INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2010 $ 46,000 4,000 8,000 8,000 60,000 100,000 30,000 57,000 $313,000 $11,400 2,000 12/31/09 $ 9,000 49,000 (25,000) 50,000 $295,000 $338,150 175,000 18,000 60,000 4,000 $ 42,000 6,000 4,000 10,000 67,000 100,000 30,000 36,000 $295,000 16.3,150 120,000 43,150 130,000 9,400 33,750 6,750 $ 27,000