Statement of Cash FlowsDirect Method applied to PR 13-1B

The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:

	Dec. 31, 20Y9			Dec. 31, 20Y8
Assets
Cash	$70,720			$47,940
Accounts receivable (net)	207,230			188,190
Inventories	298,520			289,850
Investments	0			102,000
Land	295,800			0
Equipment	438,600			358,020
Accumulated depreciationequipment	(99,110)			(84,320)
Total assets	$1,211,760			$901,680
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$205,700			$194,140
Accrued expenses payable (operating expenses)	30,600			26,860
Dividends payable	25,500			20,400
Common stock, $1 par	202,000			102,000
Paid-in capital: Excess of issue price over parcommon stock	354,000			204,000
Retained earnings	393,960			354,280
Total liabilities and stockholders' equity	$1,211,760			$901,680

The income statement for the year ended December 31, 20Y9, is as follows:

Sales		$2,023,898
Cost of goods sold		1,245,476
Gross profit		$778,422
Operating expenses:
Depreciation expense	$14,790
Other operating expenses	517,299
Total operating expenses		532,089
Operating income		$246,333
Other expenses:
Loss on sale of investments		(10,200)
Income before income tax		$236,133
Income tax expense		94,453
Net income		$141,680

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $91,800 cash.
4. The common stock was issued for cash.
5. There was a $102,000 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.