(A5Q4)

The current assets and liabilities sections of the comparative balance sheets of Regent Inc., a private entity reporting under ASPE, at December 31 are presented below, along with the income statement:

REGENT INC. Comparative Balance Sheet Accounts
	2024	2023
Cash	$27,720	$29,400
Accounts receivable	17,920	11,480
Inventory	9,100	12,880
Prepaid expenses	2,100	1,624
Accounts payable	12,040	10,080
Accrued expenses payable	1,400	2,240
Dividends payable	6,720	4,760
Dividends payable	6,720	4,760
Income tax payable	1,904	3,304
REGENT INC. Income Statement Year Ended October 31, 2024
Sales		$175,000
Cost of goods sold		109,200
Gross profit		65,800
Operating expenses	$24,640
Depreciation expense	6,440
Loss on sale of equipment	2,240	33,320
Profit before income tax		32,480
Income tax expense		8,120
Profit for the year		$24,360

Instructions

Prepare the operating section of the cash flow statement using the direct method.