Preparing a Cash Flow Statement Manchester Corporation reported the following transactions and changes in account balances during the year ended December 31, 2000:

Net income for 2000 was $160,000. The cash balance at January 1, 2000, was $34,900. Prepare a cash flow statement for the year 2000 for Manchester Corporation.

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Increase in: Accounts payable Inventory Interest receivable $ 40,000 55,000 1,800 Decrease in: Accounts receivable 75,000 Wages payable 22,000 Depreciation expense 64.000 Loss on sale of investments ($55,000 carrying value at time of sale) 12,000 Purchase of new equipment 168,000 Purchase of treasury stock 90,000 Issuance of preferred stock 70,000 Dividends paid 85,000