Booth Manufacturing has provided the following financial statements.

Booth Manufacturing

Comparative Balance Sheets

At December 31, 20X1 and 20X2

1		20X1	20X2
2	Assets
3	Cash	$112,500.00	$350,000.00
4	Accounts receivable	350,000.00	281,250.00
5	Inventories	125,000.00	150,000.00
6	Plant and equipment	1,000,000.00	1,025,000.00
7	Accumulated depreciation	(500,000.00)	(525,000.00)
8	Land	500,000.00	718,750.00
9	Total assets	$1,587,500.00	$2,000,000.00
10	Liabilities and equity
11	Accounts payable	$300,000.00	$237,500.00
12	Mortgage payable		250,000.00
13	Common stock	75,000.00	75,000.00
14	Paid-in capital in excess of par	300,000.00	300,000.00
15	Retained earnings	912,500.00	1,137,500.00
16	Total liabilities and equity	$1,587,500.00	$2,000,000.00

Booth Manufacturing

Income Statement

For the Year Ended December 31, 20X2

1	Revenues	$1,200,000.00
2	Gain on sale of equipment	50,000.00
3	Cost of goods sold	(640,000.00)
4	Depreciation expense	(125,000.00)
5	Interest expense	(35,000.00)
6	Net income	$450,000.00

Other information includes: (a) Equipment with a book value of $125,000 was sold for $175,000 (original cost was $225,000) and (b) Dividends of $225,000 were declared and paid.

Required:

Calculate operating cash flows using the direct method.

Answer Format

Calculate operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Booth Manufacturing

Operating Cash Flows

For the Year Ended September 30, 20X2

1		Income Statement	Adjustments	Cash Flows
2	Cash flows from operating activities:
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