5-55 Prepare a Statement of Cash Flows, Direct Method (Alternates are 5-53 and 5-54 .) Hiramatsu Exports, Inc., is a wholesaler of Japanese goods. By the end of 20X0, the companys cash balance had dropped to 9 million, despite net income of 254 million in 20X0. Its transactions affecting income or cash in 20X0 were as follows ( in millions):

1. Sales were 2,610, all on credit. Cash collections from customers were 2,515.

2. The cost of items sold was 1,699.

3. Inventory increased by 56.

4. Cash payments on trade accounts payable were 1,758.

5. Payments to employees were 305; accrued wages payable decreased by 24.

6. Other operating expenses, all paid in cash, were 94.

7. Interest expense, all paid in cash, was 26.

8. Income tax expense was 105; cash payments for income taxes were 108.

9. Depreciation was 151.

10. A warehouse was acquired for 540 cash.

11. Equipment was sold for 47; original cost was 206, accumulated depreciation was 159.

12. The firm received 28 for issue of common stock.

13. Long-term debt was retired for 21 cash.

14. The company paid cash dividends of 98.

Prepare a statement of cash flows for 20X0 using the direct method for reporting cash flows from operating activities. Calculate the cash balance as of January 1, 20X0. Omit supporting schedules.