The statement of cash flows for the year ended December 31, 20X1, and other data for Bradley Corporation are shown below:

Additional data:

a. Bradley’s Dividends receivable account decreased by $2,000 during the year.

b. The Machinery account, net of accumulated depreciation, increased by $100,000 during the year. The only transaction involving Machinery, other than depreciation and the purchase shown in the statement above, was the write-off on May 15, 20X1, of obsolete machinery that had a book value of $8,000.

c. Accounts receivable increased by $40,000 during 20X1. The Allowance account increased by $4,000. There were no write-offs of uncollectible accounts.

d. Salaries payable at the beginning of the year were $6,000; at the end of the year, $10,000.

e. Inventories decreased $12,000 during 20X1.

f. Taxes payable increased $6,000 during the year.

g. The investments that were sold had a book value of $40,000.

Required:

On the basis of the above information, prepare Bradley Corporation’s single-step income statement for the year ended December 31, 20X1.

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Cash flows from operating activities: Cash collections from customers $ 375,000 Dividends received 10,000 Cash outflows for: (120,000) (55,000) (26,130) (25,000) Merchandise Salaries Taxes Other operating expenses $ 158,870 Net cash provided by operating activities Cash flows from ivesting activities: Sales of investments Purchased machinery 40,000 (150,000) Net cash used by investing activities Cash flows from financing activities: Issue of capital stock (110,000) 50,000 Net increase in cash $ 98,870