Memphis Corp., a merchandiser, recently completed its 2009 operations. For the year,
(1) All sales are credit sales,
(2) All credits to Accounts Receivable reflect cash receipts from customers,
(3) All purchases of inventory are on credit,
(4) All debits to Accounts Payable reflect cash payments for inventory,
(5) Other
Expenses are all cash expenses, and
(6) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company€™s balance sheets and income statement follow.

Additional Information on Year 2009 Transactions
a. Purchased equipment for $105,000 cash.
b. Issued 14,000 shares of common stock for $5 cash per share.
c. Declared and paid $85,000 in cash dividends.
Required
Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirectmethod.

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MEMPHIS CORPORATION Comparative Balance Sheets December 31,2009 and 2008 2009 2008 Assets Cash Accounts recelvable Merchandise Inventory ...620.000 525.000 Equipment .35000 240.000 Accum. depreclation-Equipment5,000 (102.000) Total assets..RWOROw www.165,000 $137,000 74,000 82,000 Llabilltles and Equity Accounts payable Income taxes payable. Common stock, $2 par value Pald-In capital in excess $160,000 96,000 19,000 588,000 560.000 22.000 . . of par value, common stock········.. Retalned earnings.. 201,000 159,000 40,000 82.000 Total labilities and equity$1.053,000 $874,000 MEMPHIS CORPORATION Income Statement For Year Ended December 31, 2009 Sales Cost of goods sold Gross proft Operating expenses $1,794,000 1,088,000 706,000 Depreciation expense .. $ 57,000 Other expenses.. 500,000 557,000 149,000 22,000 $127.000 Income taxes expense Net income.