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	0.00	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:

1.	Calculate the cash flows from operations using the indirect method.
2.	Prepare a statement of cash flows.