Jackson Ski Haus had the following statements prepared as of December 31, 2014.

Additional information:
1. Dividends in the amount of $20,000 were declared and paid during 2014.
2. Depreciation expense and amortization expense are included in operating expenses.
3. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2014.

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

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JACKSON SKI HAUS COMPARATIVE BALANCE SHEET As oF DECEMBER 31 2014 2013 Cash Accounts receivable Short-term investments (Available-for-sale) Inventories Prepaid insurance Ski equipment Accumulated depr.-equipment Trademarks $ 2,500 103,000 96,000 91,000 4,000 89,000 (23,500) 79,000 $441,000 $ 4,000 97,000 121,000 54,000 6,000 43,000 (18,000) 83,000 $390,000 Total assets Accounts payable Income taxes payable Wages payable Short-term loans payable to bank Long-term loans payable Common stock, $1 par Additional paid-in capital Retained earnings $92,200 21,800 4,000 23,500 75,000 100,000 20,000 104,500 $441,000 $75,000 15,700 9,000 125,000 100,000 20,000 45,300 $390,000 Total liabilities & equity JACKSON SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014 Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Loss on sale of equipment Income before income tax Income tax expense Net income $540,200 302,000 238,200 94,000 144,200 $20,500 4,000 24,500 119,700 40,500 $ 79,200