(SCF—Direct Method) Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2008.

Additional information:
1. Dividends in the amount of $6,000 were declared and paid during 2008.
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 2008.
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, 2008 AND 2007 12/31/08 12/31/07 Cash $ 6,000 $ 7,000 Accounts receivable 62,000 51,000 Short-term investments (Available-for-sale) Inventories Prepaid rent Printing equipment Accumulated depr.-equipment Copyrights Total assets Accounts payable Income taxes payable Wages payable Short-term loans payable 35,000 18,000 40,000 60,000 5,000 4,000 154,000 130,000 (35,000) (25,000) 46,000 50,000 $313,000 $295,000 $ 46,000 $ 40,000 4,000 6,000 8,000 4,000 8,000 10,000 Long-term loans payable 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 & stockholders' equity $313,000 $295,000