(L02,3) (SCF—Direct Method) Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

Additional information:
1. Dividends in the amount of $6,000 were declared and paid during 2017.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.
Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

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BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $ 6,000 $ 7,000 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) Inventory 35,000 18,000 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation equipment (35,000) (25,000) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $ 46,000 $ 40,000 Income taxes payable 4,000 6,000 Salaries and wages payable Short-term loans payable Long-term loans payable 8,000 4,000 8,000 10,000 60,000 69,000 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,000 36,000 Total liabilities and stockholders' equity $313,000 $295,000