Financial statements for Rowe Publishing Company are presented below.

Required:
Prepare a statement of cash flows for 2011, using the direct method to determine net cash flow from operating activities.

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Rowe Publishing Company Balance Sheets December 31, 2011 and 2010 Rowe Publishing Company Income Statement For the Year Ended December 31, 2011 2011 2010 $1,051,000 Less: Cost of goods sold Current assets: 473,000 $ 85,000 240,000 190,000 $515,000 66,000 Less operating 231,000 expnses: 170,000 Accounts receivable $1351,000) 125,000)376,000) Total curment assels $467,000 Property, plant, and equipment: Income from Building Equipment 5 400,000 155,000 $ 555,000 375,000) $400,000 130,000 $530,000 (350,000 $97,000 Less: Interest expense Income before Accumulated depreciation Net property, plant, 81,000 180,000 $695,000 180,000 Ls: Income Total assets 5647,000 taxes expense Net income $ 59,000 LIABILITIES AND EQUITY Additional information Current liabilities: $133,000 15,000 10,000 1. No buildings nor equipment were sold during Salaries payoble Income taxes payable 2011. Equipment was purchosed for $25,000 2. Notes payable in the amount of $35,000 were 3. Bonds payable of $50,000 were issued for cash Rowe Publishing declared and paid dividends of 7,000 cash Total current liabilities $158,000 $149,000 Long-lerm liabilities: repaid during 2011 Notes payable Bonds payable $115,000 $150,000 Total longterm li Total liabilities 150,000 $299,000 $323,000 $35,000 during 2011 Equily Common stock Retcined earnings $300,000 72,000 48,000 Total equity Total tiabilities and equity $695,000