Prepare a statement of cash flows. "Use the direct method" of reporting cash flows from operating activities; include the reconciliation of cash flows from operating activities.
The comparative balance sheet of Pell Company, for 2009 and the preceding year ended December 31, 2008, appears below in condensed form

Additional data for the current year
a. Original cost of fully depreciated equipment, scrapped, no salvage value $60,000
b. Equipment was purchased for cash 183,200
c. Bonds payable were mired by payment at their f3ze amount 100,000
d. 5.000 shams of common stock were issued for cash
e. Cash dividends declared and paid 25,000
On the not page, prepare a statement of cash flows. Use the direct method of reporting cash flows from operating activities: include the reconciliation of cash flows from operating activities.

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2009 2008 $53,000 37,000 108,500 $50,000 48,000 100,000 70,000 450,000 (176,000) $542,000 Cash Accounts receivable (net) Inventories Investment Equipment Accumulated Depreciation - equipment 573,200 (142,000) $629,700 $62,500 $43,800 100,000 285,000 55,000 Accounts payable Bonds payable, due 2012 Common stock Paid-in capital in excess of par - common stock Retained earnings 325,000 80,000 162.200 $629,700 58.200 $542,000 $651,000 340,000 $311,000 Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Income from operations Other income: Gain on sale of investment $26,000 68,000 94,000 S217.000 $4,000 Other expense Interest expense Income before income tax Income tax Net income 6.000 (2.000) $215,000 86,000 S129,000