Omega Corporation's comparative balance sheet accounts worksheet at December 31, 2008 and 2007 follow with a column showing the increase (decrease) from 2007 to 2008.

Additional Information:
• On December 31, 2007, Omega acquired 25% of Belle Company’s common stock for \($275,000\). On that date, the carrying value of Belle’s assets and liabilities, which approximated their fair values, was \($1,100,000\). Belle reported income of \($120,000\) for the year ended December 31, 2008. No dividend was paid on Belle’s common stock during the year.

• During 2008, Omega loaned \($300,000\) to Chase Company, an unrelated company.
Chase made the first semiannual principal repayment of \($30,000\) plus interest at 10%, on October 1, 2008.
• On January 2, 2008, Omega sold equipment for \($40,000\) cash that cost \($60,000\) and had a carrying amount of \($35,000\).
• On December 31, 2008, Omega entered into a capital lease for an office building. The present value of the annual rental payments is \($400,000\), which equals the building’s fair value. Omega made the first rental payment of \($60,000\), when due, on January 2, 2009.
• Net income for 2008 was \($360,000\).
• Omega declared and paid cash dividends for 2008 and 2007 as follows:

Required:

Prepare a statement of cash flows for Omega Corporation for the year ended December 31, 2008 using the indirect approach.

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Comparative Balance Sheet Worksheet 2008 2007 Cash Accounts receivable Inventories $ 800,000 $ 700,000 Increase (Decrease) $100,000 1,128,000 1,168,000 (40,000) 1,850,000 1,715,000 135,000 Property, plant and equipment 3,307,000 2,967,000 340,000 Accumulated depreciation (1,165,000) (1,040,000) (125,000) Investment in Belle Company 305,000 275,000 30,000 Loan receivable 270,000 Total assets $6,495,000 -0- $5,785,000 270,000 $710,000 Accounts payable $1,015,000 $ 955,000 $ 60,000 Income taxes payable 30,000 50,000 (20,000) Dividends payable 80,000 90,000 Capital lease obligation 400,000 -0- (10,000) 400,000 Capital stock, common, $1 par 500,000 Additional paid-in capital 1,500,000 500,000 1,500,000 -0- -0- Retained earnings 2,970,000 2,690,000 280,000 Total liabilities and stockholders' equity $6,495,000 $5,785,000 $710,000