Please prepare Cash Flow Statement using direct Method of the Income Statement, using information from the attached document.

The comparative balance sheet of MARC22 CO, for 2021 and the preceding year ended December 31, 2020 appears below in condensed form:

	Year	Year
	2021	2020
Cash	$ 45,000	$ 53,500
Accounts receivable (net)	51,300	58,000
Inventories	147,200	135,000
Investments	0	60,000
Equipment	493,000	375,000
Accumulated depreciation-equipment	(113,700)	(128,000)
	$622,800	$553,500
Accounts payable	$ 61,500	$ 42,600
Bonds payable, due 2024	0	100,000
Common stock, $10 par	250,000	200,000
Paid-in capital in excess of par--
common stock	75,000	50,000
Retained earnings	236,300	160,900
	$622,800	$553,500

The income statement for the current year is as follows:

Sales		$623,000
Cost of merchandise sold		348,500
Gross profit		$274,500
Operating expenses:
Depreciation expense	$24,700
Other operating expenses	75,300	100,000
Income from operations		$174,500
Other income:
Gain on sale of investment	$ 5,000
Other expense:
Interest expense	12,000	(7,000)
Income before income tax		$167,500
Income tax		64,100
Net income		$103,400

Additional data for the current year are as follows:

(a)	Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
(b)	Bonds payable for $100,000 were retired by payment at their face amount.
(c)	5,000 shares of common stock were issued at $15 for cash.
(d)	Cash dividends declared were paid $28,000.
(e)	All sales are on account.

Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

Decrease in cash			$ (8,500)
Cash at the beginning of the year			53,500
Cash at the end of the year			$ 45,000