Data for Granger Inc. are presented in P12.9A. Further analysis reveals that accounts payable pertain to merchandise creditors. 

Instructions 

Prepare a statement of cash flows for Granger Inc. using the direct method. 

Data From P12.9A

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Granger Inc. Comparative Balance Sheets December 31 Assets 2022 2021 $ 80,800 87,800 112,500 Cash $ 48,400 Accounts receivable 38,000 Inventory Prepaid expenses Long-term investments Plant assets 102,850 28,400 26,000 138,000 109,000 285,000 242,500 Accumulated depreciation (50,000) (52,000) Total $682,500 $514,750 Liabilities and Stockholders' Equity $ 67,300 Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $102,000 16,500 21,000 110,000 146,000 220,000 175,000 234,000 105,450 Total $682,500 $514,750 Granger Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $388,460 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $135,460 12,410 46,500 27,280 4,730 7,500 233,880 Net income $154,580