Cemco Corporation's 1990 and 1989 balance sheets carried the following items:

An examination of the company's activities during 1990, including the income statement, shows the following:

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Prepare a statement of cash flows that reports the cash inflows and outflows from operating activities according to the direct method. Do not prepare a working paper. Instead, prepare the statement directly from your examination of the balance sheets and the additional information provided about the income statement and other transactions of the company. Show your supporting calculations.

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December 31 1990 1989 Debits $ 50,400 38,400 $ 19.200 43.200 100,800 86,400 88,800 72,000 $278,400 $220,800 Cash Accounts receivable. Merchandise inventory. Equipment Totals Credits Accumulated depreciation, equipment $ 21,600 $ 14,400 Accounts payable. 40.800 24,000 Income taxes payable. 4,800 9,600 Common stock, $10 par value 132,000 120,000 Contributed capital in excess of par value, common stock 26,400 24,000 Retained earnings Totals 52,800 28,800 $278,400 $220.800