On the next page are balance sheet and income statement data for Howard Bannister Company. Note: For the balance sheet data, the end-of-year information is in the left column.

Additional information for Howard Bannister Company is as follows:
(a) All accounts payable relate to inventory purchases.
(b) Equipment with an original historical cost of $1,200 was judged to be impaired during 2008. The fair value of the equipment on the date the impairment was recognized was $210.
(c) Howard Bannister made only two purchases of property, plant, and equipment during the year. One purchase was for $2,300 cash. The other purchase, for $650, was completely financed with a mortgage. The mortgage is shown as part of €œLong-term debt€ on the balance sheet.
(d) No available-for-sale securities were purchased before January 1,2007. Available-for-sale investment securities sold during 2008 had an original cost of $65.
Instructions:
Prepare a complete statement of cash flows for 2008 for Howard Bannister Company. Use the direct method for reporting cash flows from operatingactivities.

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Balance Sheet 2008 2007 $ 228 170 400 4,900 2,795 Cash 120 250 Accounts receivable 3,000 2.259 Paid-in capital Retained earnings (deficit) 1,090 Accounts payable Unearned revenue Property, plant, and equipment Long-term debt Accumulated other comprehensive income (all related to available-for-sale securities) Investments (accounted for using the equity method) 900 300 92 7.000 5.247 70 784 106 5,900 5,164 100 750 Income Statement (for 2008) Income from investments (accounted for using the equity method). Realized gain on sale of available-for-sale securities Cost of goods sold $22.535 100 45 .. Selling and administrative expenses Depreciation expense Income tax expense $14,800 170 3.380 1,068 1,200 Total Net income 20.618 2.062 l expenses and losses