Carr Company's comparative balance sheet and income statement for last year appear below:
Statement of Financial Position
|
Ending
|
Beginning
|
|
Balance
|
Balance
|
|
Cash
|
$ 3,000
|
$ 23,000
|
|
Accounts receivable
|
83,000
|
71,000
|
|
Inventory
|
39,000
|
47,000
|
|
Prepaid expenses
|
9,000
|
15,000
|
|
Long-term investments
|
240,000
|
200,000
|
|
Plant and equipment
|
515,000
|
480,000
|
|
Accumulated depreciation
|
(320,000)
|
(295,000)
|
|
Total assets
|
$569,000
|
$541,000
|
|
Accounts payable
|
$ 9,000
|
$ 25,000
|
|
Accrued liabilities
|
24,000
|
17,000
|
|
Taxes payable
|
16,000
|
21,000
|
|
Bonds payable
|
160,000
|
200,000
|
|
Deferred taxes
|
33,000
|
25,000
|
|
Common stock
|
170,000
|
140,000
|
|
Retained earnings
|
157,000
|
113,000
|
|
Total liabilities and owners' equity
|
$569,000
|
$541,000
|
Income Statement
|
Sales
|
$850,000
|
|
Less cost of goods sold
|
450,000
|
|
Gross margin
|
400,000
|
|
Less operating expenses
|
270,000
|
|
Net operating income
|
130,000
|
|
Less income taxes
|
39,000
|
|
Net income
|
$ 91,000
|
The company declared and paid $47,000 in cash dividends during the year.
Required:
Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.