Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		12/31/17			12/31/16
Cash		$6,000			$7,000
Accounts receivable		62,000			51,000
Short-term debt investments (available-for-sale)		35,000			18,000
Inventory		40,000			60,000
Prepaid rent		5,000			4,000
Equipment		154,000			130,000
Accumulated depreciationequipment		(35,000	)		(25,000	)
Copyrights		46,000			50,000
Total assets		$313,000			$295,000
Accounts payable		$46,000			$40,000
Income taxes payable		4,000			6,000
Salaries and wages payable		8,000			4,000
Short-term loans payable		8,000			10,000
Long-term loans payable		60,000			69,000
Common stock, $10 par		100,000			100,000
Contributed capital, common stock		30,000			30,000
Retained earnings		57,000			36,000
Total liabilities & stockholders equity		$313,000			$295,000

BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017
Sales revenue				$338,150
Cost of goods sold				175,000
Gross profit				163,150
Operating expenses				120,000
Operating income				43,150
Interest expense		$11,400
Gain on sale of equipment		2,000		9,400
Income before tax				33,750
Income tax expense				6,750
Net income				$27,000

Additional information:

1.		Dividends in the amount of $6,000 were declared and paid during 2017.
2.		Depreciation expense and amortization expense are included in operating expenses.
3.		No unrealized gains or losses have occurred on the investments during the year.
4.		Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.

Prepare a statement of cash flows using the DIRECT method.