Financial statements for Rowe Publishing Company are presented below.
Rowe Publishing Company
Balance Sheets
December 31, 2019 and 2018

Rowe Publishing Company
Income Statement
For the year ended
December 31, 2019

Additional Information:
1. No buildings or equipment were sold during 2019. Equipment was purchased for $25,000 cash.
2. Notes payable in the amount of $35,000 were repaid during 2019.
3. Bonds payable of $50,000 were issued for cash during 2019.
4. Rowe Publishing declared and paid dividends of $35,000 during 2019.
Required:
Prepare a statement of cash flows for 2019, using the direct method to determine net cash flow from operating activities?

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2018 2019 ASSETS Current assets: $ 85,000 240,000 190,000 $515,000 $ 66,000 231,000 170,000 $467,000 Cash Accounts receivable Inventory Total current assets Property, plant, and equipment: Building Equipment $ 400,000 155,000 $ 555,000 (375,000) $ 400,000 130,000 $ 530,000 (350,000) Accumulated depreciation Net property, plant, and equipment Total assets 180,000 $647,000 180,000 $695,000 LIABILITIES AND EQUITY Current liabilities: Accounts payable Salaries payable Income taxes payable Total current liabilities Long-tem liabilities: Notes payable Bonds payable Total long-term liabilities $133,000 15,000 10,000 $121,000 11,000 17,000 $158,000 $149,000 $115,000 $150,000 50,000 165,000 $33,000 150,000 $299,000 Total liabilities Equity: Common stock Retained eamings Total equity Total liabilities and equity $300,000 72,000 $300,000 48,000 348,000 $647,000 372,000 $695,000 Sales $1,051,000 Less: Cost (578,000) of goods sold Gross margin Less operating expenses: Salaries $ 473,000 $(351,000) Depreciation (25,000) Income from operations Less: Interest (376,000) $ 97,000 (16,000) expense Income before $ 81,000 taxes Less: Income (22,000) taxes expense Net income 2$ 59,000