Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2.

Tidwell Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

20X1 20X2

Current assets:

Accounts receivable.......$700,000................$563,000

Inventories...................250,000..................300,000

Current liabilities:

Accounts payable...........600,000..................475,000

Tidwell Company

Income Statement

For the Year Ended December 31, 20X2

Revenues................................................................$ 2,400,000

Gain on sale of equipment................................................100,000

Cost of goods sold.....................................................(1,300,000)

Depreciation expense....................................................(250,000)

Interest expense............................................................(50,000)

Net income................................................................$ 900,000

Required:

Compute operating cash flows using the direct method.