Prepare a statement of cash flows using the direct method.Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2014.

BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2014 AND 2013
		12/31/14			12/31/13
Cash		$5,828			$9,101
Accounts receivable		61,957			48,914
Short-term investments (available-for-sale)		35,115			18,113
Inventory		39,866			60,142
Prepaid rent		4,940			3,873
Equipment		153,460			125,300
Accumulated depreciationequipment		(34,901	)		(24,952	)
Copyrights		45,982			50,086
Total assets		$312,247			$290,577
Accounts payable		$45,960			$42,120
Income taxes payable		4,031			5,883
Salaries and wages payable		8,121			4,054
Short-term loans payable		8,136			9,876
Long-term loans payable		60,175			66,907
Common stock, $10 par		100,010			100,010
Contributed capital, common stock		32,630			32,630
Retained earnings		53,184			29,097
Total liabilities & stockholders equity		$312,247			$290,577

BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014
Sales revenue				$340,085
Cost of goods sold				174,300
Gross profit				165,785
Operating expenses				119,750
Operating income				46,035
Interest expense		$11,345
Gain on sale of equipment		1,928		9,417
Income before tax				36,618
Income tax expense				6,614
Net income				$30,004

Additional information:

1.		Dividends in the amount of $5,917 were declared and paid during 2014.
2.		Depreciation expense and amortization expense are included in operating expenses.
3.		No unrealized gains or losses have occurred on the investments during the year.
4.		Equipment that had a cost of $29,240 and was 70% depreciated was sold during 2014.