COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Kennington Company's condensed income statement for the year ended December 31, 20-2, was as follows:

Net sales........$800,000

Cost of goods sold......475,000

Gross profit......$325,000

Operating expenses.....148,000

Income before taxes.....$177,000

Income tax expense....62,000

Net income.......$115,000

Additional information obtained from Kennington's comparative balance sheet as of December 31, 20-2 and 20-1, was as follows:

REQUIRED
Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31,20-2.

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20-2 20-1 Cash and cash equivalents Accounts receivable Merchandise inventory Accounts payable $75,000 $ 20,000 75,000 110,000 50,000 70,000 25,000 50,000