38. The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form:

Year 2 Year 1

Cash $ 45,000 $ 53,500

Accounts receivable (net) 51,300 58,000

Inventories 147,200 135,000

Investments 0 60,000

Equipment 493,000 375,000

Accumulated depreciationequipment (113,700) (128,000)

$622,800 $553,500

Accounts payable $61,500 $42,600

Bonds payable, due Year 4 0 100,000

Common stock, $10 par 250,000 200,000

Paid-in capital in excess of parcommon stock 75,000 50,000

Retained earnings 236,300 160,900

$622,800 $553,500

The income statement for the current year is as follows:

Sales $623,000

Cost of goods sold 348,500

Gross profit $274,500

Operating expenses:

Depreciation expense $24,700

Other operating expenses 75,300

Total operating expenses 100,000

Income from operations $174,500

Other income:

Gain on sale of investment $ 5,000

Other expense:

Interest expense 12,000 (7,000)

Income before income tax $167,500

Income tax 64,100

Net income $103,400

Additional data for the current year are as follows:

(a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.

(b) Bonds payable for $100,000 were retired by payment at their face amount.

(c) 5,000 shares of common stock were issued at $15 for cash.

(d) Cash dividends declared were paid $28,000.

(e) All sales are on account.

Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

ConnieJo Company
Statement of Cash Flows
For the year ended Year 2
Cash Flows from Operating Activities	$	$
Cash received from Customers	629,700
Cash paid to Suppliers	(341,800)
Cash paid for Operating Expenses	(75,300)
Cash paid for Income Taxes	(64,100)
Net cash provided by Operating Activities		148,500
Cash Flows from Investing Activities
Cash received from sale of Investments	65,000
Cash paid for purchase of Equipment	(157,000)
Net cash used in Investing Activities		(92,000)
Cash Flows from Financing Activities
Proceeds from issuance of Common Stock	75,000
Cash paid to retire Bonds Payable	(100,000)
Cash paid for Interest	(12,000)
Cash paid for Dividends	(28,000)
Net cash used in Financing Activities		(65,000)
Net decrease in Cash		(8,500)
Cash, end of Year 1		53,500
Cash, end of Year 2		45,000

Receivable:

	Debit	Credit	Balance
Beginning			58,000 Dr.
Sales	623,000		681,000
Cash ( Balancing Amount )		629,700
Ending			51,300 Dr.

Inventories:

	Debit	Credit	Balance
Beginning			135,000 Dr.
Accounts Payable ( Balancing Amount)	360,700		495,700
Cost of Goods Sold		348,500
Ending			147,200 Dr.

Accounts Payable:

	Debit	Credit	Balance
Beginning			42,600 Cr.
Inventories		360,700	403,300
Cash ( Balancing Amount)	341,800
Ending			61,500 Cr.

Hi! I'm having trouble understanding from this example on how Cash Paid for Purchase of Equipment is (157,000). Can you explain what numbers are used to get that answer asap please. Thanks in advance!