Roberts Company has provided the following partial comparative balance sheets and the income statement for 2016.

Roberts Company
Income Statement
For the Year Ended December 31, 2016
Revenues..........................................$1,200,000
Gain on sale of equipment............................50,000
Less: Cost of goods sold...........................(650,000)
Less: Depreciation expense........................(125,000)
Less: Interest expense...............................(25,000)
Net income..........................................$ 450,000
Required:
Compute operating cash flows using the direct method.

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Roberts Company Comparative Balance Sheets At December 31, 2015 and 2016 2015 2016 Current assets: Accounts receivable Inventories Current liabilities: Accounts payable S350,000 125,000 $281,500 150,000 300,000 237.500