Belnap Company has provided the following partial comparative balance sheets and the income statement for 20X2.

Belnap Company
Income Statement
For the Year Ended December 31, 20X2
Revenues.....................................................................$ 480,000
Gain on sale of equipment....................................................20,000
Cost of goods sold.........................................................(260,000)
Depreciation expense........................................................(50,000)
Interest expense..............................................................(10,000)
Net income..................................................................$ 180,000
Required:
Compute operating cash flows using the direct method.

Belnap Company Comparative Balance Sheets At December 31,20X1 and 20X2 20X1 20X2 Current assets: Accounts receivable Inventories Current liabilities: $140,000 50,000 $112,600 24,000 Accounts payable 120,000 95,000