Data for Saffordville Company are presented in P13-9B. Further analysis reveals that accounts payable pertain to merchandise creditors.

In P13-9B, Condensed financial data of Saffordville Company are shown below.

Additional information:
1. New equipment costing $146,000 was purchased for cash during the year.
2. Investments were sold at cost.
3. Equipment costing $36,000 was sold for $15,000, resulting in a gain of $5,000.
4. A cash dividend of $48,000 was declared and paid during the year.

Instructions
Prepare a statement of cash flows for Saffordville Company using the directmethod.

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SAFFORDVILLE COMPANY Comparative Balance Sheets December 31 2014 Assets Cash Accounts receivable Inventory Investments Equipment Accumulated depreciation-equipment 2015 $102,700 60,800 126,900 79,500 315,000 (44,500) $640,400 33,400 37,000 102,650 107,000 205,000 (40,000) 445,050 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings 57,700 15,100 145,000 250,000 172,600 $640,400 S 48,280 18,830 70,000 200,000 107,940 $445,050 Total SAFFORDVILLE COMPANY Income Statement For the Year Ended December 31, 2015 Sales revenue Gain on disposal of plant assets $297,500 5,000 302,500 Less: $99,460 Cost of goods sold Operating expenses, excluding depreciation expense Depreciation expense Income tax expense Interest expense 19,670 30,500 37,270 2,940 189,840 112,660 Net income