38. The comparative balance sheet of ConnieJo Company, for December 31, Years I and 2 ended December 31 appears below in condensed form: Year 2 Year 45,000 $53,500 Cash 51,300 Accounts receivable (net) Inventories Investments Equipment Accumulated depreciation-equipment 147,200 135.000 60,000 493,000 375,000 113.700) (128,000) $622800 $553.500 $61,500 $42,600 Accounts payable Bonds payable, due Year 4 Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 100,000 250,000 200,000 50,000 236.300 160.900 $622,800 $553,500 The income statement for the current year is as follows: Sales Cost of goods sold Gross profit $623,000 348,500 $274.500 Operating expenses: Depreciation expense Other operating expenses $24,700 75.300 Total operating expenses Income from operations Other income: 100,000 $174,500 Gain on sale of investment S 5,000 Other expense Interest expense Income before income tax Income tax Net incomc 12,000(7000) $167,500 $103.400 Additional data for the current year are as follows: (a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and (b) (c) (d) (e) equipment was purchased for $157,000 Bonds payable for $100,000 were retired by payment at their face amount. 5,000 shares of common stock were issued at $15 for cash. Cash dividends declared were paid $28,000. All sales are on account. Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities