The following financial statements were drawn from the records of Matrix Shoes:

Income Statement
For the Year Ended December 31, 2017
Sales revenue .......$ 300,000
Cost of goods sold ......(144,000)
Gross margin ......... 156,000
Operating expenses
Salary expense ....... (88,000)
Depreciation expense ..... (9,800)
Utilities expense ....... (6,400)
Operating income ..... 51,800
Non-operating items
Interest expense ....... (2,400)
Loss on the sale of equipment ... (800)
Net income .......... $ 48,600
Additional Information
1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash.
2. Paid a $7,200 cash dividend to owners.
Required
Analyze the data and prepare a statement of cash flows using the direct method.

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Balance Sheets As of December 31 2017 2016 Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land $94,300 $14,100 40,000 64,000 16,000 170,000 (94,000) 30,000 $298,500 $240,100 36,000 72,000 98000 (47,800) 46,000 Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings 24,000 26,400 10,000 1,400 1,000 24,000 110,000 67,300 $298,500 $240,100 15,000 150,000 108,700 Total liabilities and equity